Bid Ask Spread Calculator

Bid Ask Spread Calculator in Forex gives you the information what is the spread, a price difference between Ask price and Bid Price.

Read more: What is Spread in Forex

Additionally, bid ask spread calculator gives you the margin in percentage.

Mid price is the price between Ask price and Bid price and you calculate mid price by dividing spread by 2 and then adding that to the Ask price.

Read more: What is Bid and Ask Price in Forex

Bid Ask Spread Calculator

Bid Ask spread calculator requires two pieces of information to calculate spread and those are Bid price and Ask price.

When you enter them the bid ask spread calculator will calculate spread, margin and mid price.

These three values are important in trading because you will see what is the cost of opening an order, spread, and what is the margin in percentage.

Mid price is the price between Bid and Ask which I will show you later how to calculate.

Bid-Ask Spread Formula

Formula for Bid Ask Spread calculation is:

Spread = Ask – Bid

It is a simple formula where you are searching for a difference between two prices.

Read more: What is Spread in Forex

Margin Formula

Second formula in the Bid Ask Spread calculator is margin which is calculated in percentage.

Margin (%) = [(Ask−Bid) / Ask] ×100

Read more: What is Margin in Forex

How Do You Calculate Mid Price From Bid-Ask?

Mid price from Bid-Ask difference is the price between Bid price and Ask price. The price difference is equally far away from the Bid and Ask price.

The formula used is this one:

Mid price = Ask price – (Spread / 2)

Mid Price Example

If you have Bid price and Ask price equal to:

• Bid price = 1.07174
• Ask Price = 1.07189

Spread = Ask – Bid

Spread = 1.07189 – 1.07174 

Spread = 0.00015

Mid price is calculated like this:

Mid price = Ask price – (Spread / 2)

Mid price = 1.07189 – (0.00015 / 2)

Mid price = 1.07189 – (0.000075)

Mid price = 1.071815

Now, let’s see this calculation with the Bid Ask spread calculator.

Second Example on the Chart

Now here is another example with the chart from the trading platform.

Mid Price Example

If you have Bid price and Ask price equal to:

• Bid price = 1.12692
• Ask Price = 1.12705

Spread = Ask – Bid

Spread = 1.12705 – 1.12692 

Spread = 0.00013

Mid price is calculated like this:

Mid price = Ask price – (Spread / 2)

Mid price = 1.12705 – (0.00013 / 2)

Mid price = 1.12705 – (0.000065)

Mid price = 1.126985 ~ 1.12699

Now, let’s see this calculation with the Bid Ask spread calculator.

Conclusion

Bid Ask spread calculator is three in one calculator because you get spread, margin in percentage and mid price calculation.

You need Bid and Ask price from the trading platform and you can easily calculate Forex basics calculation like spread which is the difference between Ask price and Bid price.

If you are a beginner in Forex trading or experienced trader, this bid ask spread calculator is a useful tool in calculating spread, margin in percentage and mid price.