What is the spread?

The difference between the bid and the ask prices is called the spread. The spread is where the dealer makes their money. You will notice dealers advertising their spreads as being smaller than others. This is because it is harder to overcome the cost of a larger spread in order to make a profit. A typical spread for a consumer account is around 2 pips.

For more information on spreads see the article Spreads Explained in More Detail.