How do you price in the spread before entry?

Beginners plan entries and stops on the mid-price and forget that they buy at the ask and stop out at the bid. The spread is a cost on entry and exit, and on some pairs it's a big one.

How do you price in the spread before entry? — bid-ask spread diagram
The bid-ask spread on a currency pair

How do you account for it?

  • whether you plan on the chart price or the executable price
  • how spread changes your stop distance maths
  • the pair where spread matters most for you
How do you price in the spread before entry? — central bank rate path diagram
A central bank's policy rate path across recent meetings

The trading costs guide shows the full entry-and-exit bill.

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