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What is the spread in Forex or CFD trading?

The spread in Forex trading is the difference between the bid and ask prices of a currency pair. For example, if the bid price of the EUR/USD currency pair is 1.3050 and the ask price is 1.3051, the spread is 1 pip (0.0001). The spread is the cost of trading in the Forex market, and it is usually expressed in pips or fractions of pips. The smaller the spread, the lower the cost of trading.

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