Spread Cost Calculator
Calculate how much the spread costs per trade in your account currency. Enter the spread in pips, your currency pair, and lot size for instant results.
Typical major pairs: 0.5–2 pips. Check your broker's quote.
A 1-pip spread on EUR/USD with 1 lot(s) costs $10.00 USD when you enter the trade.
Round-trip cost
Entering and exiting the trade (open + close) pays the spread twice:
Pip value for this trade: $10.00 per pip
What is Spread Cost?
The spread is the difference between the bid and ask price quoted by your broker. When you open a trade, you effectively "pay" this spread because you buy at the ask and sell at the bid. The spread cost is the monetary value of that spread in your account currency—it depends on the spread in pips, the currency pair, and your position size.
How to Use This Spread Cost Calculator
- Select account currency: The currency your broker account is denominated in (e.g. USD).
- Choose currency pair: The forex pair you are trading (e.g. EUR/USD).
- Enter trade size: Lot size or units (1 standard lot = 100,000 units).
- Enter spread in pips: Check your broker's quote; typical majors are 0.5–2 pips.
- Read the result: Spread cost (one-way) and round-trip cost are shown in your account currency.
Why Spread Cost Matters
Spread cost is a direct trading expense. It reduces your profit on winning trades and increases loss on losing trades. Knowing it helps you:
- Compare brokers: Lower spread = lower cost per trade.
- Size positions: Ensure your expected move (e.g. in pips) is larger than the spread so the trade is still worth taking.
- Plan targets: Factor in round-trip spread when setting take-profit and stop-loss levels.
Frequently Asked Questions
What is spread cost in forex?
Spread cost is the monetary value of the bid-ask spread you pay when entering (and exiting) a forex trade. It equals the spread in pips multiplied by the pip value for your position size. You effectively pay this cost because you buy at the ask and sell at the bid.
How is spread cost calculated?
Spread Cost = Spread (in pips) × Pip Value. Pip value depends on the currency pair, your position size (lots or units), and your account currency. Our calculator uses the pair's pip size and exchange rates to compute pip value, then multiplies by your spread in pips.
What is round-trip spread cost?
Round-trip spread cost is the total cost of entering and exiting a trade. You pay the spread when you open (buy at ask) and again when you close (sell at bid), so round-trip cost is typically twice the one-way spread cost.
Why does spread cost matter for forex traders?
Spread cost is a direct trading expense. It reduces profit on winning trades and increases loss on losing trades. Knowing it helps you compare brokers, size positions so your expected move exceeds the spread, and set realistic take-profit and stop-loss levels.
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Know Your Spread Cost—Then Automate Your Edge
Once you know how much the spread costs, build Pine Script strategies on Pineify that factor in costs and manage risk automatically on TradingView.
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