Currency & Forex
Intermediate

Spread Percentage

The bid-ask spread expressed as a percentage of the ask price.

Formula

Spread%=Ask−BidAsk×100%Spread\% = \dfrac{Ask - Bid}{Ask}\times 100\%

Variables

AskBuy price
BidSell price

Example

(1.1005−1.1000)/1.1005 ≈ 0.045%

Did You Know?

The spread is the true cost of a “commission-free” currency trade — it is baked into the price.

spreadcostforex