What is spread in forex trading

 Every trading service provider which is called the broker in forex market take service charges from the trader for every trade which you start even it is trade of buy or sell any condition. 

The spread has variation and it is the cost of each transaction. When you place a trade you will see two prices one is for buying and one is for selling and the difference between is spread. 

Normally 1 to 5 pips is the spread depends on market conditions and the pair of trading, eurousd is the popular pair to trade and it has minimum spread because of high demand. Some brokers has variation and some has fixed spread which you have to check before applying any trade. Spread is wide so it means low liquidity and high volatility and if it is opposite so situation will be changed. 

Spread is the cost of amount of profit which you have to earn from market profit and it is deducted from market price. The trader should know the market trading time when trading is slow the trader have to pay more spread during lunch hours or waiting for economic news to apply, usually day time trading is good for low spread. 

For example eurousd currency pair trading price is 1.1111 and 1.1113 so 0.0002 difference is 2 pips spread commission which will be deducted from your capital at the time of placing the order. High liquid currency pair have low spread and low liquidity pairs will have high spread.