Spread & Slippage

Spread – Refers to the difference between the bid and ask price of a currency pair. The bid price is the highest price that a market maker is willing to pay for a currency, while the ask price is the lowest price that a market maker is willing to sell a currency for. The spread is typically measured in pips, which is the smallest unit of price movement for a currency pair.

Slippage – Refers to the difference between the expected price of a trade and the price at which the trade is actually executed. This can happen when a trader places a limit or stop order, and the market moves so quickly that the order is filled at a different price. Slippage can occur during periods of high volatility or low liquidity, and can result in a trader losing more or making less than they expected on a trade.