In the foreign exchange market, the term “spread” refers to the difference between the bid price and the asking price for a currency pair. The bid price is the highest price that a buyer is willing to pay for a currency, while the ask price is the lowest price that a seller is willing to accept for the same currency. The spread is essentially the cost of the trade for the trader. It is important to note that the spread is not a fixed value and can vary depending on market conditions and the liquidity of the currency pair.