Trade planning
Spread cost calculator
The spread is the gap between the bid and the ask price. A trade starts at a loss equal to the spread, so it is a cost paid on every round trip. Comparing spreads in money terms, for the size you trade, makes it easier to compare accounts and instruments.
Result
- Spread cost
- 10.00 USD
How it is calculated
Spread cost = spread (pips) × pip value per lot × lots
Worked example
EUR/USD with a 1.2-pip spread, 2 lots, USD account: 1.2 × 10 USD × 2 = 24.00 USD.
Assumptions and practical examples
Forex spread cost is spread in pips × pip value for the position. At an illustrative 1.2 pips and 20 USD per pip, the spread cost is 24 USD. In a GBP account with an assumed 0.80 GBP per USD conversion, the same arithmetic gives 19.20 GBP.
This is the spread component, not an all-in trading cost. Add commissions or financing only when their account, currency, volume and side basis are compatible. Do not add a second full spread automatically merely because the position is opened and closed; the assumed bid/ask prices determine the calculation.
Documented broker cost inputs
These guides show only accepted, currently published cost evidence. They are not ranked. Check the account, entity, instrument, units and date before transferring a value.
Questions
Is the spread the only trading cost?
No. Some accounts also charge a commission per lot, and positions held overnight pay or earn swap.
Why does the spread change?
Spreads widen when liquidity is low, for example at the daily rollover, around major news and at the weekly open.
Should I compare typical or minimum spreads?
Typical or average spreads say more about real costs than the minimum a broker advertises.
Results are estimates for education; your broker's contract specification and prices decide the real values. Trading leveraged products carries a high risk of losing money.