<h2>Gross Spread</h2>
<p>The <strong>gross spread</strong> is a crucial concept in forex trading, representing the difference between the buy and sell prices of a currency pair. It's the total cost a trader incurs when opening a position, serving as the primary source of revenue for brokers.</p>

<h2>How It Works</h2>
<p>The gross spread is calculated by subtracting the bid price (sell price) from the ask price (buy price) of a currency pair. For instance, if the EUR/USD pair has a bid of 1.18500 and an ask of 1.18550, the gross spread would be:</p>
<p><strong>Gross Spread = Ask Price - Bid Price</strong></p>
<p><strong>Gross Spread = 1.18550 - 1.18500 = 0.00050</strong></p>

<h2>Why It Matters for Traders</h2>
<p>The gross spread is a vital metric for traders as it directly impacts their trading costs and profitability. Here's why:</p>
<ul>
<li><strong>Trading Costs:</strong> The gross spread is the immediate cost of entering a trade. A wider spread means higher costs, reducing potential profits.</li>
<li><strong>Liquidity:</strong> Major currency pairs typically have tighter spreads due to higher liquidity, making them more attractive for traders.</li>
<li><strong>Broker's Revenue:</strong> The gross spread is the primary revenue source for brokers. Understanding it helps traders choose brokers with competitive spreads.</li>
</ul>

<h2>Example</h2>
<p>Consider a trader using STB Provider, a regulated forex broker offering up to 1:300 leverage and 500+ instruments on MetaTrader 5. The trader wants to buy 100,000 units of EUR/USD with a gross spread of 1.5 pips (0.00015). The cost of opening the position would be:</p>
<p><strong>Cost = Lot Size * Gross Spread</strong></p>
<p><strong>Cost = 100,000 * 0.00015 = $15</strong></p>

<h2>Key Takeaways</h2>
<ul>
<li>The gross spread is the difference between the buy and sell prices of a currency pair.</li>
<li>It represents the total cost of opening a position in forex trading.</li>
<li>Understanding the gross spread helps traders manage their trading costs and choose brokers with competitive fees.</li>
<li>Traders can use MetaTrader 5 to monitor live spreads and make informed trading decisions.</li>
</ul>