What are spreads in trading and why do they matter?

Spreads are a key part of every traders journey, and understanding them can directly impact your profits.

So, what exactly is a “spread”？

In simple terms, the spread is the difference between the buy (ask) price and the sell (bid) price of a currency pair (or any asset). It's basically how brokers and liquidity providers make money — instead of charging commissions, they widen the price gap slightly.

🧠 Example:

If EUR/USD is quoted as 1.1050/1.1052, the spread is 2 pips.

If you buy at 1.1052 and sell immediately, youll get 1.1050 — meaning a 2 pip cost. The market has to move in your favor to break even.

Why do spreads matter to YOU as a trader？

Because spreads are essentially your hidden cost. Tighter spreads = lower trading costs = higher potential profits.

They especially matter if youre a scalper or day trader placing multiple trades a day — those small differences add up quickly!

✅ At Giraffe Markets, we offer:

• Raw spreads starting from 0.0 pips

• Fast execution on MT5

• Access to deep liquidity

Whether you're just starting out or managing a professional portfolio, tight spreads can give you a clear edge.