What Is a Spread?

2 min. readlast update: 05.06.2026

The spread is the difference between the buy (ask) price and the sell (bid) price of a trading instrument. It reflects the cost of entering a trade and is typically measured in pips, which indicate price movement.

Example
  • EURUSD Ask Price: 1.08010
  • EURUSD Bid Price: 1.08000
  • Spread: 1 pip

Understanding the spread helps you make more informed trading decisions especially when planning entries and exits.


How Spreads Work in Live Markets

Spreads are not fixed, they adjust continuously based on real-time market conditions. This is known as a floating spread.

You may notice spreads widening or narrowing depending on market activity. Staying aware of these changes allows you to better time your trades.

๐Ÿ‘‰ Take control of your trading by monitoring spreads before entering a position!


What Causes Spreads to Change?

Several factors can impact spread size:

  • Market Volatility
    Higher volatility often leads to wider spreads.
  • Economic News & Announcements
    Major events can cause rapid market movements and temporary spread increases.
  • Liquidity Levels
    Lower liquidity such as during market open/close can result in wider spreads.
  • Instrument Type
    High-volume instruments (like major currency pairs) typically have tighter spreads, while less-traded instruments may have wider ones.

๐Ÿ‘‰ Stay prepared! Track upcoming events using the Economic Calendar to anticipate market changes.


How to Check the Spread

You can easily monitor spreads directly within your trading platform:

Liquid Charts Regular
  • Click the three-line menu on the right side of the screen
  • Select the Spread column
  • View spread values (in pips) directly in your watchlist
Liquid Charts Pro
  • Click the View button on the left side
  • Navigate to Show โ†’ select Spread column
  • View spread values (in pips) across your watchlist

Need Support?

If you need help understanding spreads or navigating your platform, support is available 24/7. 

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