Forex spread is the transaction cost of a trading for the forex trader and the commission or service charges for a broker. It is the difference between the Bid and Ask price of a trading commodity or a currency pair.
A currency pair comprises on two currencies i.e. base currency and counter or quoted currency. Base currency is valued in terms of other currency by using the exchange rate. The base currency at all times equal to one. For example, In the case of currency pair EUR/USD = 1.3651 |