In the context of forex trading, the spread is the difference between the bid price and ask price of a currency pair. The bid price is the price at which a trader can sell a currency pair, while the ask price is the price at which a trader can buy a currency pair. The spread represents the cost of trading and is typically measured in pips. The spread can be fixed or variable, depending on the market conditions and the broker’s pricing model. Tighter spreads are generally considered better for traders because they reduce the cost of trading.