Understanding Bid, Ask and Spread
Learn how the bid-ask spread works, how it represents transaction cost, and why spreads fluctuate with market volatility.
- Define the Bid-Ask spread and calculate it accurately in pips.
- Understand the spread as the primary transaction cost of trading.
- Recognize market conditions that cause spreads to widen (news releases, session rollover).
<p>The <strong>spread</strong> is the gap between the price at which you can buy an asset and the price at which you can sell it. It is the primary cost of execution in foreign exchange trading.</p>
Lesson 5 Is Locked
To ensure mathematical discipline and eliminate premature losses, curriculum units must be completed in sequential order. You must complete and pass Lesson 1 before this unit unlocks.
Core Foundations Mastered: Activate the Live Trading Floor
Congratulations on completing Lessons 1 through 5. You have mastered session timing, liquidity mechanics, and risk ratios. You are now eligible to activate the Live Trading Terminal and continue learning through advanced Lessons 6 to 30.
Fund at least USD 50 directly in your own regulated JustMarkets live account (Partner code: tohstb0d83). 100% Capital Custody: your capital remains under your complete control with the broker at all times.