Your trade may show a loss immediately after opening because of the spread, the gap between the buying price (Ask) and selling price (Bid). The spread is built into the quoted prices rather than deducted as a separate fee.
How is the spread calculated?
Spread = Ask price − Bid price
For example, If EUR/USD is quoted at 1.08500 / 1.08515:
- Bid, or sell price: 1.08500.
- Ask, or buy price: 1.08515.
- Spread: 0.00015, or 1.5 pips
How much does the spread affect your trade?
The effect depends on the instrument, position size, and spread when your order is executed.
For example, for a 1-lot EUR/USD position with an assumed pip value of approximately USD 10 per standard lot and a spread of 1.5 pips:
USD 10 × 1.5 pips = approximately USD 15
This is not a separate or an additional USD 15 fee. It is the effect of the difference between the price at which you enter the trade and the price at which the position could be closed at that moment.
The actual spread may vary depending on market conditions and the price available when your order is executed.
Does spread vary by account type?
Yes. Spreads can vary by instrument, account type and market conditions. One account may offer a lower spread but charge a commission, while another may have a wider spread with no commission.
The spread is the difference between the Bid and Ask prices, while a commission is a separate trading charge that may apply to the trade.
For more details on average spreads and commissions, see the Moneta Markets Spreads and Commissions page. The spreads shown on the website are indicative figures. The actual spread available to you may vary depending on market conditions and the prices available when your order is executed.
Where can I check current spreads?
Check the Moneta Markets live spread directly in Moneta Markets App, MetaTrader 4 (MT4) or MetaTrader 5 (MT5) while logged in to the relevant trading account. See How do I check the live spread? for MT4, MT5 and Moneta Markets app instructions.
