Explaining Spreads

2 min. readlast update: 06.24.2025

What is a Spread?

A spread is the difference between the Bid and Ask prices of a trading instrument.

  • The Bid Price is the highest price buyers are willing to pay — it’s the price you'd sell at.
  • The Ask Price is the lowest price sellers are willing to accept — it’s the price you'd buy at.

Spread = Ask Price - Bid Price

This difference is essentially the cost of entering a trade and can vary depending on market conditions, the instrument, and your account type.

What Triggers My Stop Loss?
  • For Buy positions, the Bid Price is used when closing the trade (your position is sold).
  • For Sell positions, the Ask Price is used (your position is bought back).

This is why the spread matters — it can influence when your stop loss or take profit levels get triggered.

How Can I View the Spread?

By default, MT5 doesn’t show the spread directly, but you can easily add it to your Market Watch for real-time visibility.

To View the Spread in MT5:

  1. Open the Market Watch window (press Ctrl + M or go to View > Market Watch).

  2. Right-click anywhere in the Market Watch list.

  3. Click on “Spread” from the context menu.

  4. A new column will appear showing the spread for each instrument — displayed in points (where 10 points = 1 pip, depending on your broker's setup).

Spreads shown here are dynamic and update in real time.

How Do I Add the Spread Column to My Watchlist?

 

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