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Estimate the cost represented by a spread
Multiply spread measured in pips by pip value expressed in account currency. Enter both values for the same position size and instrument. The result is a simplified account-currency amount represented by that bid–ask difference. It is not a forecast of the full realised trading outcome.
A concrete example
With pip value of 10 and spread of 1.2 pips, the estimate is 12 in the stated account currency. If the position size changes, recompute pip value first. A pip value taken from a different lot size will produce an inconsistent estimate even if the spread input is accurate.
Avoid pip and point confusion
A quoted spread in platform points may not use the same unit as a spread in pips. Convert the value to the pip convention used by your pip-value input before calculating. Use the instrument specification and your data-source definitions; this page cannot infer the convention from a symbol name.
Keep other charges separate
The result does not include commissions, overnight financing or slippage. Do not automatically double it to estimate a round trip: the treatment depends on the pricing convention and the positions being compared. For a platform integration, document bid, ask, precision and units so each consuming system calculates costs consistently.