What is spread?

[Zeologic]

The spread serves as a source of profit for forex brokers, derived from the difference between the market price and a markup—typically calculated in pips. Forex trading features two types of spreads: fixed spreads, where the value remains constant regardless of market conditions; and variable spreads, which fluctuate based on market liquidity. When liquidity is low, spreads can widen, whereas high liquidity can result in very tight spreads—or even zero pips.