The word ‘spread’ in forex is now very common. It is a crucial figure to determine trading costs. The spread is defined as the difference between the sell/bid price of an asset. You can encounter spreads in pips or Percentage In Points. One pip means a one-point movement in the market value based on the fourth decimal place of a specific currency pair. See the example below:bid/ask of 1.07325/ 1.07330 (0.5 pips spread)bid/ask of 1.07325/ 1.07335 (1 pip spread)