What Is Spread, and Why It Changes? (MT5 Step-by-Step + Tiny Example)
Summary
Spread is the small difference between the buy and sell prices in Forex.
It’s how brokers cover costs and how market conditions show up on your chart.
In MT5, knowing your spread helps you trade smarter and avoid surprises.
Key Takeaways
- Spread = Ask price – Bid price
- It changes with market activity and volatility
- Lower spread = lower cost to open a trade
- MT5 shows spread live; you just need to turn it on
- Always check spread before placing trades
A – The Idea in Simple Words
Spread is the gap between what you pay to buy and what you get when you sell.
Think of it like currency exchange at the airport — they buy from you at one rate, sell to you at another, and keep the difference.
In Forex, the spread is usually small (measured in pips), but it’s a real trading cost.
It changes because the market is not always equally busy or calm.
During news, spreads can jump.
At quiet hours, spreads may be stable but sometimes wider.
Knowing this can save you money.
B – MT5 Steps to See the Spread
1. Open MT5 and log in to your account.
2. Go to Market Watch (Ctrl+M).
3. Right-click anywhere in the Market Watch list.
4. Tick “Spread” from the menu.
5. You will now see a “Spread” column for each symbol.
6. Spread will update live in points (1 pip = 10 points on most Forex pairs).
C – Quick Example with Numbers
Let’s say:
- EURUSD Ask = 1.10020
- EURUSD Bid = 1.10000
Price Type | Value
Ask | 1.10020
Bid | 1.10000
Spread | 0.00020 = 2 pips
If you buy, you start at –2 pips because of the spread.
If you sell, same thing — you start negative by the spread amount.
D – Common Mistakes & Fixes
- Ignoring the spread → Always check before trading.
- Trading during news → Spreads can spike unexpectedly.
- Confusing points and pips → Learn the difference: 1 pip = 10 points.
- Not checking account type → Some accounts have lower spreads but commissions.
- Assuming spread is fixed → It changes with time and volatility.
E – If You Use My Tools
Some of my MT5 indicators can display live spread directly on your chart in large, clear numbers.
Check my MQL5 profile for chart tools that make spread tracking easier.
Mini-Glossary
- Spread: Difference between Ask and Bid prices.
- Pip: Standard price unit in Forex (0.0001 for most pairs).
- Ask Price: Price to buy the currency.
- Bid Price: Price to sell the currency.
- Points: Smallest unit in MT5 quotes; 10 points = 1 pip.
- Volatility: How much prices move in a period.
- Commission: Fixed fee per trade (separate from spread).
- Market Watch: MT5 window showing symbol prices and spreads.
Checklist
- [ ] Turn on the “Spread” column in MT5.
- [ ] Know 1 pip = 10 points.
- [ ] Check spread before placing trades.
- [ ] Avoid high-spread times (news releases).
- [ ] Understand spread is a trading cost.
- [ ] Watch how spread changes at different hours.
- [ ] Compare spreads across your account types.
Next on MQL5
- Understanding Pips and Points in MT5
- How to Use Market Watch in MT5
one of these eight blocks.
