Spread

Spreads are a hidden cost that many traders underestimate. If EUR/USD has a 1.2-pip spread and you trade 10 standard lots, you start each trade at a $120 loss. For day traders making 5-10 trades per day, spread costs can add up to hundreds or thousands of dollars per week.

Spreads vary by instrument, time of day, and market conditions. Major forex pairs like EUR/USD typically have the tightest spreads (0.5-1.5 pips). Exotic pairs, volatile instruments, and off-peak hours have wider spreads. During high-impact news events, spreads can widen dramatically — sometimes to 10-50x normal levels.

For prop traders, spread costs directly reduce your net profitability and make it harder to hit profit targets. This is why most successful prop traders focus on high-liquidity instruments with tight spreads. PropJournal tracks your total spread costs per trade and per session, helping you understand the true cost of each trade.