Glossary
Spread: definition
The spread is the difference between the highest bid and the lowest ask. Crossing it is a cost, paid in the price rather than on a commission line.
In practice
Tight spreads in major shares, major FX pairs and large ETFs during liquid hours are why those markets are usable. Wide spreads in small shares, quiet hours and stressed commodities are a reason to wait or to use a limit. CFD providers quote their own spread, which can widen. Comparing two brokers’ spreads from a blog table is pointless unless the figures were taken in the same minute on the same instrument. WiT Markets therefore leaves live spreads as Not confirmed.
A worked example
A pair quoted 1.1000 / 1.1002 has a 2-pip spread. On a standard lot that is a defined cash cost. On a mini or micro lot the cash amount is smaller and the spread in pips may be the same or worse.
Related
Sources and review
Last reviewed: 2026-10-13. Next review due 2027-04-13. Status: editorial review of this page, not a live verification of every third-party fee.
Author: WiT Markets Editorial, Editorial desk. The WiT Markets editorial desk writes explanatory pages, comparison context and research notes. It separates sourced facts from items that are not confirmed, and it does not provide personal recommendations.
Reviewed by: WiT Markets Research Review.
Primary and regulatory sources
- BIS Triennial Central Bank Survey — checked 2026-10-13
- Investor.gov — checked 2026-10-13