Spread

The spread is the difference between the current buy (ask) price and sell (bid) price. A position normally opens at one side of the spread and would close at the other, so the spread affects the position from entry.

Spreads can widen or narrow with liquidity, volatility, market openings, news and the instrument being traded. Check the live bid and ask prices before placing an order.

Illustrative quote with a 1.0848 bid, 1.0850 ask and 0.0002 spread, equal to two pips for this example.
Illustrative example only. Live prices and pip conventions vary by instrument.

Illustrative spread example

If an illustrative quote shows a bid of 1.0848 and an ask of 1.0850, the spread is 1.0850 − 1.0848 = 0.0002. For this example, that is 2 pips. Pip size and quoting conventions differ between instruments, so use the live platform specification and current bid and ask for an actual trade.

Swap

Swap is an overnight financing adjustment applied when an eligible position remains open across the platform rollover. Long and short positions can have different swap values, and a value may be a debit or a credit.

The amount can vary by instrument and day. Some rollover days can account for multiple calendar days. Check the current long-swap and short-swap fields and the rollover information in the platform contract specification.

Timeline showing an open position crossing platform rollover, when a long or short swap debit or credit may be applied.
A swap can be a debit or credit. Actual rates and rollover treatment vary by instrument, direction and day.

Illustrative swap example

Suppose the live specification for an instrument shows a negative long-swap value and a positive short-swap value on that day. An eligible long position held across rollover may receive a debit, while an eligible short position may receive a credit. This is illustrative only: the direction, rate, calculation method and any multi-day adjustment must be checked in the live platform specification.

Commission

Commission is a separate charge associated with opening or closing a trade where the account or instrument uses commission pricing. It is distinct from the spread.

MarketMates does not add a MarketMates markup to spreads, swaps or commissions. This does not mean every displayed spread, swap or commission value is zero; live market, liquidity-provider and product conditions still apply.

Illustrative commission example

Using the current US$25-per-US$1-million commission example, an illustrative US$250,000 trade value would be US$250,000 ÷ US$1,000,000 × US$25 = US$6.25 for the charge covered by that rate.

This example does not state the rate for every instrument or account, and a specification may define when the charge is applied differently. Check the live commission field and the platform confirmation for the actual trade.

Estimate the complete cost

Before trading, consider the spread, any commission, any swap that may apply if the position crosses rollover, and the effect of currency conversion where relevant. The platform confirmation and account history show the amounts actually applied to your trade.

Instrument specifications can change and some fields may not be supplied for every instrument. Confirm current details inside the trading platform rather than using an old example.

Trading cost stack containing spread, commission if applicable, swap if held across rollover, and currency conversion if relevant.
Not every cost applies to every trade. Use live platform specifications to build the relevant estimate.
spreadbid askswapovernight financingcommissiontrading costs