Forex prices are always displayed with two prices:

• Bid price – the price at which traders can sell the base currency
• Ask price – the price at which traders can buy the base currency

The difference between these two prices is called the spread.

Example:

• Bid: 1.1000
• Ask: 1.1002
• Spread: 2 pips

The spread represents a trading cost and is how many brokers earn revenue. Spreads can vary based on:

• Market volatility
• Liquidity
• Trading session
• Currency pair

Major pairs generally have lower spreads due to higher trading volume.