Spread

The spread is the difference between the bid price (what buyers will pay) and the ask price (what sellers demand). It represents the immediate cost of entering a trade. Major forex pairs like EUR/USD typically have spreads of 0.5-2 pips during liquid sessions, while exotic pairs can have spreads of 10-50+ pips.

How Spread Is Used in Trading

Spreads vary significantly by trading session. During the London-New York overlap (13:00-17:00 UTC), major pair spreads are at their tightest. During the Asian session, they widen moderately. During low-liquidity periods (weekends, holidays), spreads can expand dramatically. Understanding this pattern is essential for cost-effective trading.

For algorithmic traders, spread monitoring is critical. A strategy that works with a 1-pip spread may be unprofitable with a 3-pip spread. The /v1/spread endpoint provides real-time spread data, allowing your algorithm to pause trading when spreads are too wide or adjust position sizes based on current cost conditions.

Spread analysis across brokers reveals execution quality differences. By comparing typical spreads from different data sources, traders can identify which broker offers the most competitive pricing for their preferred instruments and trading sessions.

Access via API