Bid, ask and spread: why a new position can start negative
The price at which you can buy a currency position usually differs from the price at which you can sell it. That gap helps explain why a newly opened position can immediately show a loss even if the chart barely moves.
Read both sides of the quote
With a hypothetical bid of 1.1000 and ask of 1.1002, buying at the ask and immediately selling at the bid costs 0.0002 per unit before commission. For 10,000 units that is two dollars when the quote currency is USD.
Compare costs on the same basis
A platform advertising a small spread may charge a separate commission. Another may incorporate more of its charge in the quote. Record the spread, commission for opening and closing, and any conversion charge for the same position size.
Observe changing conditions
Spreads can vary with liquidity and market conditions. A screenshot from a quiet moment does not establish the cost during a news release. In a demo journal, record both bid and ask at the same timestamp. This produces a more useful comparison than a list of promotional minimum spreads that may not describe the price available to you.
Sources & further reading
Source material and official guidance. Original practical suggestions are editorial content, not statements from the organisations below. Selected references checked September 24, 2026; publication dates and context are stated in each article.
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