Bid/Ask Spread
The bid/ask spread is simply the difference between the bid and ask price; or if you like, the buying and selling price.
The bid/ask spread = (Bid price –Ask price)
The spread on a particular currency pair will vary from broker to broker although typically will tend to be less than 0.1%.
The spread is also sometimes referred to as the transaction cost as it is this spread that the Forex broker keeps as commission for executing the deal.
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