Skip to main content
Trading foreign exchange and leveraged financial derivatives on margin carries a high level of risk and may not be suitable for all investors.

Trading mechanics

Spreads, pricing, and trading cost

The spread is the difference between bid and ask; it is one part of the total cost and can vary as market conditions change.

Bid, ask, and spread

A sell order normally deals from the bid side and a buy order from the ask side. The difference is the spread. Because prices can move between the time an order is submitted and processed, the displayed quote is context for a decision rather than a promise of a particular fill.

Look beyond the spread

Commission, swap or financing, currency conversion, and the way a position is opened or closed may also affect cost. Check the symbol specification and the terms for the relevant account, then include those costs when considering position size and the distance to a stop level.