Use our forex spread calculator to find out the spread cost of your leverage forex trading pair. It can be used for any forex pair, simply follow the step-by-step guide below.

Information: A low spread cost in the Forex market is between 0.06% – 0.03%. A high spread cost in the Forex market is considered anything above 0.10%.

How to use the forex spread calculator:

2. Add the Bid Price. (e.g. 1.0095 or 1.5233)
3. The forex spread is calculated automatically.

What is a forex spread calculator?

A forex spread calculator is a tool designed to help traders figure out the difference between the bid and the ask price of a currency pair in the forex market.

This difference, known as the spread, is very important in forex trading, influencing the potential profit and loss from trades.

How the forex spread calculator works

Using the forex spread cost calculator is straightforward:

• Ask Price: Input the current ask price of the currency pair you’re interested in.
• Bid Price: Provide the current bid price for the currency pair.
• Calculate: The calculator automatically determines the spread percentage, giving you a clear idea of the cost to enter a trade.

It is a great tool to use in combination with a forex compounding calculator to figure out the exact cost and the future growth potential of a forex trade.

What is the formula for calculating forex spread?

The formula to calculate the forex spread is simple:

• Ask Price: This is the minimum price that a seller is willing to accept for a currency pair.
• Bid Price: This is the maximum price a buyer is ready to pay for the currency pair.

How do you calculate the spread in forex?

To calculate the Forex spread, perform the following steps:

• Input the Prices: Insert these values into the appropriate fields on the calculator.
• View the Result: The calculator automatically showcases the spread in percentage terms, helping you to understand the prevailing market conditions.

Let’s say the current ask price for a currency pair is 1.1000, and the bid price is 1.0990.

Using our formula, we find the spread to be:

Forex Spread = ((1.1000 – 1.0990) / 1.1000) x 100% ≈ 0.091%

Why you should calculate forex spread

Calculating the Forex spread is vital for several reasons:

• Cost-Efficiency: Keeping the spread low can save you money in the long run.