The Spread is the core cost of trading. It is simply the difference between the buying price and the selling price of any instrument we offer.
Every instrument has two prices displayed at the same time. The difference between these two prices is the spread.
Understanding Bid and Ask Prices
The two prices you see for any instrument on your platform are called the Ask Price and the Bid Price:
| Price Name | Definition | Price Comparison |
| Ask Price (The Offer) | This is the price you get when you BUY an instrument. | Always the Higher Price |
| Bid Price (The Demand) | This is the price you get when you SELL an instrument. | Always the Lower Price |
Example: EUR/USD
Formula: Spread = Ask Price - Bid Price.
- Ask Price (Price to Buy): 1.1053
- Bid Price (Price to Sell): 1.1050
- Spread: , which is 3 pips. (A "pip" is the standard unit used to measure price changes.)
How the Spread Affects Your Trade
The spread is your cost to enter the market. Every trade you open on your Tradin account automatically starts at a small negative balance, equal to the value of the spread.
- When you open a trade, you buy at the higher Ask Price. To close, you must sell at the lower Bid Price.
The market price must first move in your favor enough to cover the spread before your trade can reach the zero point (break-even). Any movement after that is your profit.
Example:
If the spread on your trade is 3 pips, the price of the instrument must increase by 3 pips just to cover the cost of opening the position.
What Makes the Spread Change?
The spread on our platform is variable, meaning it is not always the same size. It can become wider (more expensive) or tighter (cheaper) depending on market conditions.
| Market Factor | Effect on the Spread | Why It Matters |
| Instrument Popularity | Tighter. Popular instruments like EUR/USD generally have smaller spreads due to high trading volume. | Lower cost to trade. |
| Time of Day | Tighter. Spreads are smallest during busy market hours (e.g., when the London and New York sessions overlap). | Faster execution and lower costs. |
| Major News Events | Wider. Volatility around announcements (like interest rate decisions) causes spreads to widen quickly. | Higher cost and higher risk during unpredictable times. |
Tradin offers highly competitive spreads and options like the Raw Account, which features spreads from 0.0 pips plus a small commission.
