What is spread

Spread is the difference between the offer price and the bid price quoted by a bank for forex trading. It is the basic transaction cost for forex trading.

Taking EUR/USD as an example, if the offer price is 1.02274 and the bid price is 1.02271, then the spread will be 1.02274 - 1.02271 = 0.00003, or 0.3 pip.