How it works
The bid is the price at which the market or provider is willing to buy the base currency from you, while the ask is the price at which it will sell it to you. The gap between them is the spread.
What to check
When comparing quotes, note the time, market conditions and account type. A tight displayed spread during liquid hours may not represent what appears around news events or thin trading periods.
- Read both sides of the quote
- Measure the spread in the pair's units
- Expect spreads to vary
Limits and risks
The bid-ask spread is an immediate trading cost. It can widen quickly, which means a position can start further from break-even than a headline minimum spread suggests.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.