In case you opened a position on MetaTrader 5 and suddenly realized that you have entered into the market at a minus of a few pips, there is nothing to worry about – you have not made any mistakes. This so-called “instant minus” is most likely just spread at work.

For prop traders, it is crucial to know how the spread is presented in MT5 and how to calculate spread in forex. This detail is usually considered minor but may influence your trading performance negatively when working in a funded account.

Let us take a closer look.

First things first: what MT5 is actually showing you

When opening the MT5 platform, each currency pair will present the following two prices simultaneously:

• Bid price – price of selling
• Ask price – price of buying

Thus, spread is the difference between these prices.

For instance, once you open MT5, you will see the following:

• EUR/USD Bid: 1.0850
• EUR/USD Ask: 1.0852

So, the spread (cost of trading) is already provided on MT5 but not in an easily understandable way.

However, there is a significant nuance – MT5 does not explicitly state the spread value on the main chart of the terminal.

Where to actually see spread in MT5

MT5 has several methods available to analyze spread, although traders typically opt to use only one or two of them:

Market Watch Window

It is one of the quickest and easiest methods. Traders can see the Bid/Ask prices together. Their difference will be the spread value.

Chart View

In the chart view, MT5 displays just one price line, Bid by default. Ask line is normally disabled.

How to activate it:

• Click the right mouse button on the chart
• Click “Properties”
• Check “Show Ask Line”

Depth of Market (DOM)

Some brokers can enable this additional method in MT5 where the trader can see how spreads behave depending on liquidity.

The simple spread formula every prop trader should know

Without further ado, let's go right ahead with our discussion.

Formula-wise, the basic calculation is simple enough and is given below:

Spread = Ask Price – Bid Price

Done with No complications.

But if we need to be a bit like those professional traders using a Forex Funded Account, we should also learn to express it in pips:

Spread (in pips) = (Ask – Bid) / Pip Size

In almost all cases, the pip size is 0.0001; that makes the calculation quite straightforward in one's head after some practice.

Exactly how it's done for calculating the spread in forex in MT5!

Why MT5 spread matters more in prop trading

The spread being slightly high for retail trading is bothersome.

For prop traders? Well, it can subtly impact your performance.

Typically, a prop trading firm will be governed by policies such as:

• Daily maximum drawdowns
• Maximum loss limits
• Narrow target profits

Consequently, any variation in spreads, even a slight one, could influence the outcome of your trades, particularly if you:

• Place several trades each day
• Scalp often
• Operate in volatile sessions

Consider this scenario:

If your spread is 2–3 pips and you conduct ten trades daily, you’re already starting each day with a deficit.

And MT5 will not “alert” you about it—only show you the prices.

It’s up to you to correctly interpret them.

A quick real-world MT5 example

Let’s say you’re trading USD/JPY on MT5:

• Bid: 148.20
• Ask: 148.23

Step 1: Subtract
148.23 − 148.20 = 0.03

Step 2: Convert to pips
For JPY pairs, 1 pip = 0.01

So:
0.03 ÷ 0.01 = 3 pips spread

Now imagine you’re trading 2 lots in a prop firm challenge:

• 1 pip = approx $20 (for 2 lots)
• Spread cost = 3 pips × $20 = $60

And just like that, you’re $60 in the red before price even moves.

This is why experienced traders always check MT5 spread before entering.

Hidden spread behavior in MT5 you should know

Spreads on MT5 change constantly.

For example, you may observe:

Tighter spreads:

• Session in London
• Session in New York
• Pairs with high liquidity

Wide spreads:

• Session in Asia
• News events
• Opening and closing of the market
• Pairs with low liquidity and exotics

But there's a catch: MT5 changes spreads dynamically, but few traders monitor it closely enough.

The reason for such problems is that trades executed at the moment when spreads widen dramatically can ruin an entire setup.

Habit to apply: check spread before each trade

To make it practical and easy, do this:

Each time before making any trade using MT5:

• See Bid and Ask prices
• Calculate the spread in pips
• Compare it with your average value
• Make a conclusion on whether the trade makes sense or not

It's really just 5-10 seconds of work.

Combining spread awareness with strategy

The spread itself isn’t only an expense; it actually needs to influence your decision-making.

To illustrate:

• Scalping → requires ultra-low spread environment
• Swing trading → the spread plays minor role
• News trading → spreads may get rather volatile

In case, if you’re seriously interested in passing prop firm test, the spread environment in MT5 should be considered when choosing trades.

Conclusion

MT5 is open about its spreads but doesn’t make them stand out explicitly. All spreads are visible in their raw form within the Bid/Ask range for each symbol.

After gaining knowledge of how to see spread in MT5, and how to determine it accurately, you realize that it's much more important than some indicator on your screen.

Understanding of MT5 spreads becomes crucial for success in prop trading.

Since survival among funded traders means more than just having a reliable entry signal.