How much is 10 pips worth?

A pip is the unit of measure a trader uses for the smallest value changes in a currency pair’s exchange rate. In forex trading, can also be used to reference profits or losses since a pip’s value can differ according to the leverage a trader uses. The standard Lot size is 100,000 units. Units referred to the base currency (EUR). Therefore 1 Lot or 100,000 units worth 100,000 EURs. For instance, if the EUR/USD moves by ten pips, from 1.11596 to 1.11696, 10 pips would be worth 8.96 (EUR).

How does spread affect profit?

The spread affects profit given that a currency pair reveals information about market conditions such as time, volatility and liquidity. For instance, emerging currency pairs have a greater spread than major currency pairs. Currency pairs involving major currencies have lower spreads. Traders should also consider peak trading times for particular currencies. For instance, the cost of trading the Australian Dollar (AUD) will be higher during nighttime in Australia. This is as there are not as many market participants actively trading at this time. Similarly, other Australian financial markets that may influence forex are also closed at this time. A wider currency pair spread means that a trader would pay more when buying and receive less when selling.

What is low spread in forex?

Low spread in forex is the difference between the bid and the ask price. Traders prefer to place their traders when spreads are low like during the major forex sessions. Spreads are likely to be low when volatility is low and liquidity is high. When there is a bigger difference between the bid price (buy) and the ask price (sell), it means that traders are likely to spend more on wider spreads because of high volatility and lower market liquidity.

Forex & CFD spreads

Q: How is Spread Calculated in the Forex Market?

The bid/ask spread is calculated by subtracting the bid price (sell) from the ask price (buy). For instance, the EUR/AUD is quoted as 1.6162/1.6163. Simply subtract the bid price (1.6162) from the ask price (1.6163) to determine the spread. 1.6163-1.6162 = 0.0001 In this example, the cost of trading is 0.0001 or 1 pip. This is considered an extremely low spread. To determine the total spread cost, you must multiple the pip cost by the total amount of lots traded. If trading a 10k EUR/AUD lot, you would incur a total cost of: 0.0001 x 10,000 (10k lot) = $1 For more complex calculations involving margin, use FP Markets Forex Calculator.

Q: What Does a Forex Spread Tell Traders?

The spread of a given currency pair reveals information about market conditions such as time, volatility and liquidity. Emerging currency pairs have a greater spread than major currency pairs. There are 8 major currencies which account for approximately 85% of the forex market turnover. With more market makers, real-time pricing and higher trade volumes, pairs involving major currencies have lower spreads. In addition, there are peak trading times for particular currencies. For instance, the cost of trading the AUD will be higher when it is night time in Australia. This is as there are not as many market participants actively trading at this time. Similarly, other Australian financial markets that may influence forex are also closed at this time.

Learn how Forex & CFD spreads impact your trading costs and take advantage of our competitive pricing on popular currency pairs and other instruments.

START TRADING

What is spread in Forex trading?

Trade FX with competitive spreads

Getting access to trading in the forex market incurs some costs. One of these costs is the bid/ask spread, which is the difference between the ask and bid prices. A large spread increases the cost of trading a specific financial instrument, such as a currency pair. In contrast, a low spread reduces trading costs.

A trader should calculate the impact of spreads on their trading costs and adjust their plans accordingly. FP Markets offers tight spreads on a wide array of popular financial instruments, starting as low as 0.0 pips.

Click on a product to view our typical spreads

Forex

Metals

Indices

Commodities

Digital Currencies

How do spreads affect your trades?

Traders should closely monitor changes in spreads for their preferred financial instruments. Specific groups of traders, such as scalpers and day traders, base their decisions on even the most minor spread changes.

High spreads

Low liquidity or periods of increased market volatility can cause the difference between bid and ask prices to rise to higher-than-usual levels. A prime example of financial instruments with high spreads due to low liquidity are minor and exotic currency pairs, which are not widely traded in markets.

Low spreads

Low market volatility or periods of high liquidity can reduce the difference between bid and ask prices, resulting in low spreads. Major currency pairs, such as the EUR/USD or GBP/USD, tend to have low spreads as they are widely traded in forex markets around the world.

Forex spread fundamentals

Forex spreads may sometimes confuse beginner traders. The difference between bid and ask prices, measured in ‘pips’ or ‘points’, can change depending on market conditions. Since spread costs represent the primary cost of every trade, beginners or less experienced traders should learn the fundamentals of forex trading to build effective strategies. Read our Beginner’s Guide to Forex Trading, prepared by experienced traders, and enhance your trading knowledge today.

Bid vs Ask Price

The bid price is the ‘quote price’ a trader or investor can sell at (located on the left side of the quotation), and the ask price is the quote price a trader/investor can buy at (located on the right side of the quotation). We can also consider it from a liquidity provider’s point of view: the bid price represents willing buyers standing ready to receive sell orders (from traders), and the ask price reflects willing sellers that are prepared to sell to buyers (buy orders from traders).

How to calculate Forex spreads: an example

In forex trading, every currency pair has two prices: the bid and the ask.

For example, if the EUR/USD currency pair is quoted at US$1.1351 / US$1.1352, here’s what it means:

US$1.1351 is the bid price – the price you can sell 1 euro for.

US$1.1352 is the ask price – the price you can buy 1 euro at.

The euro (EUR) is the base currency, and the US dollar (USD) is the quote currency (or term currency).

The spread is the difference between the bid and ask prices.

In this example:

A pip stands for ‘percentage in point’ and is usually the smallest whole price movement a currency pair can make. For most currency pairs, 1 pip = 0.0001 (the fourth decimal place).

The current bid and ask prices are the price levels that traders can engage (trade) with the market immediately or ‘on the spot’. The ask price will always usually be slightly higher than the underlying market price, whereas the bid price is slightly below the underlying market price.

Which factors can affect spreads?

Spreads can be influenced by a variety of factors. High market volatility can impact spreads, making them wider as brokers seek to reduce their risk during times of uncertainty; low liquidity in the market can also weigh on spreads, making trades more expensive.

Spreads can affect trading profitability as they may widen significantly during volatile market conditions, causing slippage (trades get executed at a price different from the requested fill price). Another factor that should be taken into consideration is market conditions in relation to geopolitical developments. Important news updates can play a role in shaping market momentum with spreads following suit.

Fixed and variable spreads

Traders may encounter two types of spreads when executing their trades: fixed and variable.

Fixed spreads remain the same, no matter the market conditions. Fixed spreads allow traders to calculate their trading costs without worrying about any spread changes. On the contrary, variable (or floating) spreads keep changing based on the supply and demand of financial instruments and the overall market volatility. Variable spreads may be lower than fixed spreads during high-liquidity trading sessions, but their volatile nature should be taken into consideration when developing trading plans.

Forex spreads and pip calculation example

When trading forex, understanding spreads and pip value is essential for managing costs and calculating potential profits. The spread is the small difference between the bid and ask prices. A pip measures the smallest price movement in a currency pair, and its value depends on your trade size.

When your trading account is in the same currency as the base currency (the first currency in the pair), figuring out the pip value is easy.

Forex spreads and pip calculation example

As an example, if the bid/ask rate for the GBP/USD is US$1.2272/US$1.2273, a trader can enter long the pound at the ask price ofUS $1.2273 and short from the bid price of US$1.2272. And the difference between these two prices is the bid/ask spread: the Forex spread, which, in this case, would be 1 pip, or 0.0001. As a reminder, this is found by taking the difference between the ask rate and bid rate.

Calculating the total pip value will differ depending on the currency pair, the account currency denomination and the units traded. Let’s assume the account is traded in USD, and the currency pair is EUR/USD (the account currency is the same as the quote currency).

Forex spreads and pip calculation example

If you are trading a 10,000-unit trade for the EUR/USD (1 Mini-Lot), the pip value, or ‘initial spread cost’, would be 1 USD = (0.0001 * 10,000 units).

If you are trading a Standard Lot (100,000 units of the base currency), your pip value or ‘initial spread cost’, would be 10 USD = (0.0001 * 100,000 units).

Forex spreads and pip calculation example

However, trading an account currency that matches the base currency involves dividing the pip value (usually 0.0001 with most currency pairs) by the currency pair’s exchange rate, then multiplying the resulting value by the units traded.

For example, assume an account traded in GBP, and you’re trading GBP/USD. We would divide 0.0001 by the GBP/USD exchange rate: US$1.2409 and multiply the resulting value by 100,000 units (trading 1 Standard Lot) to equal £8.0 (rounded). So, £8.06 GBP is your pip value.

Forex spreads and pip calculation example

When your account currency is different from the base currency (the first currency in the pair you’re trading), you need an extra step.

Find the exchange rate between your account currency and the quote currency (second currency in the pair).

Divide 0.0001 by that exchange rate.

Multiply by the number of units you are trading.

For example:

Your account is in GBP.

You are trading USD/CHF.

You need the GBP/CHF exchange rate, which is CHF1.1149.

Step-by-step:

0.0001 ÷ 1.1149 = 0.00008971

0.00008971 × 100,000 = £8.97

So, each pip move is worth about £8.97.

Industry-leading Forex spreads

FP Markets provides an array of fixed and variable spreads for fast trade execution. Partnering with market-leading financial institutions, FP Markets traders benefit from deep liquidity pools and real-time price quotes for various popular financial instruments. Open a Standard or a Raw trading account and build your trading plan, taking advantage of spreads as low as 0.0 pips.

Forex trading accounts

Spreads

from 1.0 pips

Spreads

from 0.0 pips

Commission

Zero

Commission

US$3.00

Minimum deposit

US$100 or equivalent

Minimum deposit

US$100 or equivalent

Maximum leverage

1:500

Maximum leverage

1:500

MetaTrader Standard & Raw commission charges

Instrument	Standard Account	Raw Account
Instrument	Standard Account	Account CCY	Per Side	Round Trip
Forex & Metals	Zero (Built into the spread)	AUD/CAD/SGD	$3.5	$7
		USD	$3	$6
		EUR	€2.75	€5.5
		GBP	£2.25	£4.5
		HKD	$20	$40
		JPY	¥250	¥500
Commodities	Zero (Built into the spread)	Zero (Built into the spread)
Indices	Zero (Built into the spread)	Zero (Built into the spread)
Shares	Zero (Built into the spread)	Zero (Built into the spread)
Cryptocurrencies	Zero (Built into the spread)	Zero (Built into the spread)

Trade execution matters

Achieving your financial goals requires your broker’s full support. FP Markets’ traders get access to some of the best trading platforms, real time price charts, technical indicators, latest market insights, and fast order execution speeds in an all-in-one package that makes their trading experience unique.

Choose one of the MT4, MT5 or cTrader platforms to experience trading with tight spreads and transparent commissions.

Monitoring live Forex Spreads on the FP Markets MT4 / MT5 platforms

Once the trading platform is active, press Ctrl+M to activate the Market Watch window.

For MT4, right-click anywhere on your Market Watch window and select ‘Spread’ to view each instrument’s spread.

For MT5, right-click anywhere on your Market Watch window and select ‘Columns’, allowing you to check the option ‘Spread’ to view the spreads for each instrument.

Chart Bid and Ask prices on the FP Markets MT4 / MT5 Platforms

Right-click anywhere on your chart.

For MT4, select ‘Properties’ (F8), then select the ‘Common’ tab. Following this, check the ‘Show Ask Line’ box to view the bid and ask prices on your selected chart.

For MT5, select ‘Properties’ (F8), then select the ‘Show’ tab and check the ‘Show ask price line’ box to view the bid and ask prices on your selected chart.

Forex spreads - FAQs

What does spread mean in the Forex market?

Spread in Forex is the difference between the bid price and ask price. The spread cost is measured in ‘pips’ or ‘points’ and is the primary cost of trading. A currency pair’s spread can be influenced by a number of factors, including volatility and liquidity.

How is spread calculated in the Forex market?

Spread in Forex is calculated by taking the difference between the current bid and ask prices of a currency pair.

Spread = Ask Price − Bid Price

For instance, the EUR/AUD currency pair is quoted as AU$1.6162/AU$1.6163. Simply subtract the ask price (AU$1.6163) from the bid price ($AU1.6162) to determine the spread: 0.0001.

What does a Forex spread tell traders?

Knowing the forex spread of a specific currency pair provides traders with insights into the market’s volatility and liquidity. As a result, forex spreads can serve as indicators of overall market conditions.

How do spreads affect profits?

Short-term trading strategies such as scalping and day trading are more likely to be affected by widening spreads. Wider spreads lead to increased trading costs, reducing the potential for profitable trades.

Long-term trading strategies, like swing or position trading, are less likely to be impacted by wider spreads.

What is a high and low spread in Forex?

A high (wide) spread is defined as a wide bid/ask spread. For example, imagine a usual spread of 1 pip compared with a spread of 7 pips for the same trading instrument. So, in this example, the instrument may have a bid rate of US$1.0050 and an ask rate of US$1.0057, revealing a wide spread. A low spread in this example, therefore, could be reflected using the same bid rate of US$1.0050, though with a smaller ask rate of US$1.0051 (this is a 1-pip spread).

Spreads

(July 2026)

Spreads on our MetaTrader 4 platform are variable, with quotes from major international financial institutions. During liquid times our industry-leading spreads can go as low as 0.0 pips. Our more typical spreads are listed below.

FOREX

METAL

CFD INDICES

CFD COMMODITIES

CRYPTOCURRENCY

Symbol	Product	Standard A/c	Raw ECN A/c
Symbol	Product	Avg	Min	Avg
AUDCAD	Australian Dollar vs Canadian Dollar	1.46	0	0.66
AUDCHF	Australian Dollar vs Swiss Franc	1.9	0	0.8
AUDJPY	Australian Dollar vs Japanese Yen	1.65	0	0.55
AUDNZD	Australian Dollar vs New Zealand Dollar	1.56	0	0.76
AUDSGD	Australian Dollar vs Singapore Dollar	2.6	0	1.1
AUDUSD	Australian Dollar vs US Dollar	1.43	0	0.33
CADCHF	Canadian Dollar vs Swiss Franc	1.59	0	0.79
CADJPY	Canadian Dollar vs Japanese Yen	1.8	0	0.69
CHFJPY	Swiss Franc vs Japanese Yen	3.21	0	2.1
CHFSGD	Swiss Franc vs Singapore Dollar	3.62	0	2.48
EURAUD	Euro vs Australian Dollar	1.87	0	0.77
EURCAD	Euro vs Canadian Dollar	2.59	0	0.99
EURCHF	Euro vs Swiss Franc	1.6	0	0.5
EURCZK	Euro vs Czech Koruna	66.26	0	48.86
EURDKK	Euro vs Danish Krone	10.75	0	4.75
EURGBP	Euro vs Great Britain Pound	1.58	0	0.48
EURHUF	Euro vs Hungarian Forint	34.75	0	13.55
EURJPY	Euro vs Japanese Yen	1.64	0	0.54
EURMXN	Euro vs Mexican Peso	58.54	0	38.54
EURNOK	Euro vs Norwegian Krone	40.6	0	33.1
EURNZD	Euro vs New Zealand Dollar	3.21	0	2.11
EURPLN	Euro vs Polish Zloty	13.07	0	9.77
EURSEK	Euro vs Swedish Krona	38.59	0	33.09
EURSGD	Euro vs Singapore Dollar	2.33	0	1.23
EURUSD	Euro vs US Dollar	1.27	0	0.17
EURZAR	Euro vs South African Rand	72.14	0	60.64
GBPAUD	Great Britain Pound vs Australian Dollar	3.04	0	1.94
GBPCAD	Great Britain Pound vs Canadian Dollar	2.85	0	1.75
GBPCHF	Great Britain Pound vs Swiss Franc	2.76	0	1.59
GBPDKK	Great Britain Pound vs Danish Krone	20.79	5.2	14.79
GBPJPY	Great Britain Pound vs Japanese Yen	2.43	0	1.33
GBPMXN	Great Britain Pound vs Mexican Peso	77.71	0	57.71
GBPNZD	Great Britain Pound vs New Zealand Dollar	5.14	0	3.61
GBPPLN	Great Britain Pound vs Polish Zloty	24.67	11.4	23.17
GBPSEK	Great Britain Pound vs Swedish Krona	83.37	14	78.67
GBPSGD	Great Britain Pound vs Singapore Dollar	3.6	0	2.37
GBPUSD	Great Britain Pound vs US Dollar	1.66	0	0.56
NZDCAD	New Zealand Dollar vs Canadian Dollar	1.97	0	1.15
NZDCHF	New Zealand Dollar vs Swiss Franc	1.73	0	0.91
NZDJPY	New Zealand Dollar vs Japanese Yen	2.11	0.1	1.01
NZDSGD	New Zealand Dollar vs Singapore Dollar	2.6	0.1	1.5
NZDUSD	New Zealand Dollar vs US Dollar	1.83	0.1	0.63
USDBRL	US Dollar vs Brazilian Real	34.99	10	24.99
USDCAD	US Dollar vs Canadian Dollar	1.79	0.1	0.69
USDCHF	US Dollar vs Swiss Franc	2.13	0.1	1.03
USDCNH	US Dollar vs Chinese Yuan	1.79	0.1	0.69
USDCZK	US Dollar vs Czech Koruna	54.43	0.1	37.03
USDDKK	US Dollar vs Danish Krone	14.18	0.1	8.18
USDHUF	US Dollar vs Hungarian Forint	224.63	0.1	11.03
USDINR	US Dollar vs Indian Rupee	21.85	10	11.85
USDJPY	US Dollar vs Japanese Yen	1.43	0.1	0.34
USDKRW	US Dollar vs Korean Won	61.92	9.1	41.92
USDMXN	US Dollar vs Mexican Peso	34.38	4	28.38
USDNOK	US Dollar vs Norwegian Krone	41.67	0.1	33.17
USDPLN	US Dollar vs Polish Zloty	14.17	0.1	10.48
USDSEK	US Dollar vs Swedish Krona	41.04	0.1	32.34
USDSGD	US Dollar vs Singapore Dollar	1.89	0.1	1.09
USDTHB	US Dollar vs Thai Baht	168.95	0.1	148.96
USDZAR	US Dollar vs South African Rand	47.63	2	36.73

Symbol	Product	Standard A/c	Raw ECN A/c
Symbol	Product	Avg	Min	Avg
XAGAUD	Silver vs Australian Dollar	0.07	0.02	0.06
XAGEUR	Silver vs Euro	0.05	0.02	0.04
XAGUSD	Silver vs US Dollar	0.06	0.02	0.05
XAUAUD	Gold vs Australian Dollar	1.1	0.26	1
XAUEUR	Gold vs Euro	0.48	0.01	0.3
XAUUSD	Gold vs US Dollar	0.23	0.06	0.09
XPDUSD	Palladium vs US Dollar	6.02	0.2	7.43
XPTUSD	Platinum vs US Dollar	4.93	0.72	6.83
XPBUSD	Lead vs US Dollar	4	1.95	3.86
XZNUSD	Zinc vs US Dollar	3.41	2.17	3.27
XNIUSD	Nickel vs US Dollar	23.58	14.94	23.44
XALUSD	Aluminum vs US Dollar	3.53	1.65	3.39
XCUUSD	Copper vs US Dollar	5.84	3.1	5.7
XAUGBP	Gold vs Great Britain Pound	0.9	0.06	0.78
XAUSGD	Gold vs Singapore Dollar	0.91	0.05	0.72
XAGSGD	Silver vs Singapore Dollar	0.05	0	0.04
XAUCNH	Gold vs Chinese Renminbi	5.15	0.88	4.13

Symbol	Product	Standard A/c
Symbol	Product	Avg
ADAUSD	Cardano vs US Dollar	2.43
BCHUSD	Bitcoin Cash vs US Dollar	0.6
BTCUSD	Bitcoin vs US Dollar	16.44
DOGUSD	Dogecoin vs US Dollar	11.63
DOTUSD	Polkadot vs US Dollar	0.02
ETHUSD	Etherium vs US Dollar	0.71
LNKUSD	Chainlink vs US Dollar	0.04
LTCUSD	Litecoin vs US Dollar	0.06
RPLUSD	Ripple vs US Dollar	2.64
SOLUSD	Solana vs US Dollar	0.72
XLMUSD	Stellar vs US Dollar	32.98

Symbol	Product	Standard A/c
Symbol	Product	Avg
COCOA	Cocoa vs US Dollar Cash	22
COTTON	Us Cotton No.2 vs US Dollar Future	2.03
SUGAR	Us Sugar No.11 vs US Dollar Future	1.05
COFFEE	US Coffee vs US Dollar Future	1
CORN	Corn vs US Dollar Cash	0.7
WHEAT	Wheat vs US Dollar Cash	2.1
WTI	West Texas Intermediate Crude Oil vs US Dollar Future	0.02
XBRUSD	Brent Crude Oil vs US Dollar Cash	0.04
XNGUSD	Natural Gas vs US Dollar Cash	0.01
XTIUSD	West Texas Intermediate Crude Oil vs US Dollar Cash	0.04
BRENT	Brent Crude Oil vs US Dollar Future	0.04

Symbol	Product	Standard A/c
Symbol	Product	Avg
AUS200	Australia 200 Index vs Australian Dollar Cash	1.34
CHINA50	China A50 Index vs US Dollar Cash	5.52
EURO50	Euro 50 Index vs Euro Cash	1.93
FRA40	CAC 40 Index vs Euro Cash	2.63
GER40	German 40 Index vs Euro Cash	2.24
HK50	Hang Seng Index vs Hong Kong Dollar Cash	5.89
JP225	Japan 225 Index vs Japanese Yen Cash	10.6
SPA35	Spain 35 Index vs Euro Cash	5.6
UK100	UK100 Index vs Great Britain Pound Cash	1.72
US100	US Tech 100 Index vs US Dollar Cash	0.86
US30	US 30 Index vs US Dollar Cash	1.6
US500	US 500 Index vs US Dollar Cash	0.25
USDX	USD Index Basket vs US Dollar Future	0.04
VIX	VIX Index Cash vs US Dollar Future	0.21