Bid, ask, and the spread

The hidden costs that quietly eat returns, starting with the spread.

Trading 101Lesson 2 of 8

All lessons

By the end of this lesson you'll be able to:

01Define the spread
02Identify the main trading costs
03Factor costs into every trade

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is Bid Ask Spread? A Guide for Beginners

Key terms

Spread Bid Price Ask Price Swap

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
The spread is the difference between which two prices?
Question 02
The bid is 1.2000 and the ask is 1.2002. What is the spread?
Question 03
Because you cross the spread on entry, how does every new position start?
Question 04
Your target is a 5-pip gain, but the spread is 2 pips. Your net gain if the target is hit is about:
Question 05
What is the overnight cost of holding a leveraged position called?
Question 06
Which cost applies only to leveraged positions held overnight?
Question 07
Broker A has a 0.5-pip spread; Broker B has a 3-pip spread. For frequent trading, what about Broker B?
Question 08
A scalper on tiny targets loses money despite mostly good calls. What is the likely culprit?
Question 09
Trading costs eat into returns most for which traders?
Question 10
What do wider spreads and higher fees mean?

Answered 0 of 10 · pass 70% (7/10) to complete

Trading 1012 of 8

Bid, ask, and the spread

The hidden costs that quietly eat returns, starting with the spread.

Trading 101Lesson 2 of 8

All lessons

By the end of this lesson you'll be able to:

01Define the spread
02Identify the main trading costs
03Factor costs into every trade

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is Bid Ask Spread? A Guide for Beginners

Key terms

Spread Bid Price Ask Price Swap

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
The spread is the difference between which two prices?
Question 02
The bid is 1.2000 and the ask is 1.2002. What is the spread?
Question 03
Because you cross the spread on entry, how does every new position start?
Question 04
Your target is a 5-pip gain, but the spread is 2 pips. Your net gain if the target is hit is about:
Question 05
What is the overnight cost of holding a leveraged position called?
Question 06
Which cost applies only to leveraged positions held overnight?
Question 07
Broker A has a 0.5-pip spread; Broker B has a 3-pip spread. For frequent trading, what about Broker B?
Question 08
A scalper on tiny targets loses money despite mostly good calls. What is the likely culprit?
Question 09
Trading costs eat into returns most for which traders?
Question 10
What do wider spreads and higher fees mean?

Answered 0 of 10 · pass 70% (7/10) to complete

Trading 1012 of 8

Bid, ask, and the spread

By the end of this lesson you'll be able to:

Read the guide first

Quick check

The spread is the difference between which two prices?

The bid is 1.2000 and the ask is 1.2002. What is the spread?

Because you cross the spread on entry, how does every new position start?

Your target is a 5-pip gain, but the spread is 2 pips. Your net gain if the target is hit is about:

What is the overnight cost of holding a leveraged position called?

Which cost applies only to leveraged positions held overnight?

Broker A has a 0.5-pip spread; Broker B has a 3-pip spread. For frequent trading, what about Broker B?

A scalper on tiny targets loses money despite mostly good calls. What is the likely culprit?

Trading costs eat into returns most for which traders?

What do wider spreads and higher fees mean?

Bid, ask, and the spread

By the end of this lesson you'll be able to:

Read the guide first

Quick check

The spread is the difference between which two prices?

The bid is 1.2000 and the ask is 1.2002. What is the spread?

Because you cross the spread on entry, how does every new position start?

Your target is a 5-pip gain, but the spread is 2 pips. Your net gain if the target is hit is about:

What is the overnight cost of holding a leveraged position called?

Which cost applies only to leveraged positions held overnight?

Broker A has a 0.5-pip spread; Broker B has a 3-pip spread. For frequent trading, what about Broker B?

A scalper on tiny targets loses money despite mostly good calls. What is the likely culprit?

Trading costs eat into returns most for which traders?

What do wider spreads and higher fees mean?