The bid and ask price (from the client’s perspective) is the highest price that a group of buyers / group of sellers are willing to pay / sell and asset for. The difference between the bid and ask price is called the spread. A variable spread occurs when the bid and ask price to fluctuate due to the demand and supply of the currency pair. In comparison, a fixed spread ensures the difference between the bid and ask price stays consistent, regardless of market conditions.
The spread is the differences between two prices. In this case, it’s the difference between the buy (bid) and the sell (ask) price. In forex exchange, the spread is likely to be the commission charged by the broker/ or the liquidity provider for providing filing the buy/sell order.
The spread in forex is measured in “pips”, which is the smallest unit of the price movement of the currency pair. One pip is equal to 0.0001. Therefore, a 2 pip spread between the EUR/USD would be 1.1050 / 1.052
