#CommunityAMA Knowing the cost of spreads and swaps is essential for accurate profit calculations and effective risk management in forex trading. The spread is the difference between the bid and ask price, representing a broker’s fee for executing a trade. Swaps, or rollover fees, are charges or credits for holding a position overnight, influenced by interest rate differentials between currency pairs. Understanding these costs helps traders avoid unexpected losses and choose the most cost-effective trading strategies.