In trading, the spread is the difference between the bid (sell) and ask (buy) prices of a financial instrument.
It represents the cost of opening a trade and is one of the main ways brokers earn revenue.
The tighter the spread, the lower your trading costs - which is why competitive spreads are important when choosing a broker like Blueberry.
Example:
If the quote for EUR/USD is:
Bid (Sell) = 1.1050
Ask (Buy) = 1.1052
The spread = 2 pips or 20 points
Why Does the Spread Matter?
The spread is an important concept because it directly impacts the cost of opening and closing a trade. The moment you open a trade, you start with a small unrealized loss equal to the spread.
In most cases:
You buy at the Ask price
You sell at the Bid price
Therefore, to close the trade in profit, the market must move beyond the spread in your favor.
Fixed vs. Floating Spreads
At Blueberry, we offer floating spreads, which means:
Spreads vary based on market conditions such as liquidity, volatility, and news events.
During major news releases or low-liquidity hours (like rollover), spreads may widen temporarily.
Typical Spread Ranges:
Major forex pairs (e.g., EUR/USD, USD/JPY) often have tight spreads
Minor or exotic pairs, indices, or commodities may have wider spreads
Spread on Different Account Types
Standard Account: The spread is built into the pricing. You don’t pay commissions separately.
Raw Account: Spreads are much tighter sometimes from 0.0 pips, but a commission per trade is charged instead.