What is Spread in Forex
In forex trading, the spread represents the transaction cost you pay to enter a trade. For Russia traders, this is particularly important because the ruble is a volatile currency, and spreads on USD/RUB can widen quickly during economic news releases or geopolitical events. A spread is measured in pips—the smallest price movement in a currency pair. For most major pairs like EUR/USD, a spread might be 0.5 to 1.5 pips, but for USD/RUB, spreads can be 10-30 pips under normal conditions and much wider during high volatility.
How does it work? When you buy a currency pair, you pay the ask price; when you sell, you receive the bid price. The broker keeps the difference. For example, if you trade 1 standard lot (100,000 units) of USD/RUB with a spread of 20 pips, your cost is 20 rubles per pip, or 400 rubles total. That's a direct cost to your account.
In Russia, spreads are influenced by local factors: the Central Bank of Russia's interest rate decisions, oil price movements, and sanctions news. During Moscow trading hours (10:00-18:00 MSK), liquidity is higher, so spreads are tighter. Many Russian brokers offer fixed spreads on certain accounts, but variable spreads are more common and can spike during news events. Using USDT or Skrill for deposits can also affect your net spread cost due to conversion fees.