Does the spread affect both buy order and sell order?

I did some search of spread but I still cannot understand how the spread is added to a quote price.

Why I ask the question is because that, I did backtest of my trading system in fixed spread in MetaTrader 4/5, for example, the spread is 1.0 pip and my take profit is 25 pips, and I want to always keep the take profit at 25 pips in live account which is floating spread, so I need to recalculate the take profit like "TP - (LiveSpread - 1.0pip)". For example the current spread of live account is 1.4 pips, so my take profit should be "25 - (1.4 - 1.0) = 24.6".
But I cannot be sure that if both my buy orders and sell orders need recalculate the TP, or just apply to one side?

In another words, if a quote price is 1.41451, and the spread is set to 2 pips by broker, so the ask/bid is 1.41461/1.41441, or 1.41431/1.41451 ? If the latter is correct, the spread only affect the ask price or the buy order, so my TP of sell order don't need to be recalculated by spread.

Thank you! And sorry for my bad English.

If you buy you are doing this at the current ASK price, visa versa for the BID price in the case of sell. The spread does not influene your TP or SL.

So for example if you entered the market via a long position (which utilizes the ASK price) the BID price has to move to the desired value afterwards (either it is the TP or SL or whatever target you have applied) to get out of the market again. For short positions it is simply the opposite.

Thank you for your reply. But I think the spread influence TP. For example, there are 2 situations:

[Fixed Spread - 1.0 pip]
1. The quote price is 1.12345, so the ask/bid is 1.12350/1.12340
2. I placed a buy market order with 10 pips TakeProfit. The order executed at the current ask price, 1.12350.
3. Then, the quote price changed to 1.12455, so the ask/bid is 1.12460/1.12450, my previous buy order reached the 10 pips TakeProfit and closed by bid price 1.12450. (noted that the distance of the original quote price is 1.12455 - 1.12345 = 10 pips)

[Floating Spread (1.0 to 3.0, the spread added to both ask and bid side)]
1. The quote price is 1.12345, the current spread is 1.0 pip, so the ask/bid is 1.12350/1.12340
2. I placed a buy market order with 10 pips TakeProfit. The order executed at the current ask price, 1.12350.
3. Then, the quote price changed to 1.12445, and the spread now is 3.0 pips, so the ask/bid is 1.12460/1.12430, my previous buy order has not reached the TakeProfit yet because the current profit is only 1.12430(bid) - 1.12350 = 8 pips. (noted that the distance of the original quote price is already 1.12445 - 1.12345 = 10 pips)
4. After then, the quote price changed to 1.12465, the spread now is 3.0 pips, so the ask/bid is 1.12480/1.12450, finally, my previous buy order reached the 10 pips TakeProfit and closed by bid price 1.12450.(noted that the distance of the original quote price is already 1.12465 - 1.12345 = 12 pips)

See, if I didn't adjust the TakeProfit to 8 pips when the spread is 3 pips, I cannot close my order at step 3 as the same as in the Fixed Spread.( when the original quote price changed 10 pips)

If the spread only added to ask side, the situation will be changed as below.

[Floating Spread (1.0 to 3.0, the spread added to ask side)]
1. The quote price is 1.12345, the current spread is 1.0 pip, so the ask/bid is 1.12355/1.12345
2. I placed a buy market order with 10 pips TakeProfit. The order executed at the current ask price, 1.12355.
3. Then, the quote price changed to 1.12445, and the spread now is 3.0 pips, so the ask/bid is 1.12475/1.12445, my previous buy order has not reached the TakeProfit yet because the current profit is only 1.12445(bid) - 1.12355 = 9 pips. (noted that the distance of the original quote price is already 1.12445 - 1.12345 = 10 pips)
4. After then, the quote price changed to 1.12455, the spread now is 3.0 pips, so the ask/bid is 1.12485/1.12455, finally, my previous buy order reached the 10 pips TakeProfit and closed by bid price 1.12455.(noted that the distance of the original quote price is already 1.12455 - 1.12345 = 11 pips)

At this situation, the TakeProfit need adjusted to 9 pips to get the same result as Fixed Spread.

If the spread only added to bid side, the situation will be changed again as below.

[Floating Spread (1.0 to 3.0, the spread added to bid side)]
1. The quote price is 1.12345, the current spread is 1.0 pip, so the ask/bid is 1.12345/1.12335
2. I placed a buy market order with 10 pips TakeProfit. The order executed at the current ask price, 1.12345.
3. Then, the quote price changed to 1.12445, and the spread now is 3.0 pips, so the ask/bid is 1.12445/1.12415, my previous buy order has not reached the TakeProfit yet because the current profit is only 1.12415(bid) - 1.12345 = 7 pips. (noted that the distance of the original quote price is already 1.12445 - 1.12345 = 10 pips)
4. After then, the quote price changed to 1.12475, the spread now is 3.0 pips, so the ask/bid is 1.12475/1.12445, finally, my previous buy order reached the 10 pips TakeProfit and closed by bid price 1.12445.(noted that the distance of the original quote price is already 1.12475 - 1.12345 = 13 pips)

At this situation, the TakeProfit need adjusted to 7 pips to get the same result as Fixed Spread.

So I would like to know that how the broker add the spread to the original quote price?

There is no "original price quote". You did not get it. There is a BID and ASK price only! No average or any other fancy quotation you are elaborating about. Your whole sketch is wrong.

Forex is OTC. So quotes are made by offer and demand.

If you are using a fixed spread broker, you are staying inside the house of the broker (b-booking), meaning you never reach the interbanket market. The broker takes the risk and hedges your trade at a slightly better price for the most situations. So he is earning on that difference. Besides the fact that the majority of retail clients lose money meaning he is earning on that as well.

Using ECN you are dependent on the best BID/ASK available at one of the liquidity providers. Usually brokers are earning on commission only here.

But since there is no median price you ALWAYS got your TP or SL value credited pip wise as you ALWAYS got into the market with either BID or ASK and out of the market with the opposite order. It is totally irrelevant what the spread is doing in between.

I got it, thanks a lot!
But please allow me to ask one more question.
I trade in a Market Maker(b-booking) broker with floating spread now. Their spread is obviously higher than ECN brokers.
So I think they make the ask/bid prices themselves refer to current the price from market (or liquidity providers), right?
(for example, the ask/bid from current market is 1.1234/1.1233, they want to wider the spread for profit, so add more 4 pips spread themselves)
And my question is, how they add their spread to the ask/bid prices?
Does it just add half of spread to ask and another half to bid? Or there are different method depend on different broker?

As I already said in my last post, they earn on the hedge of your trade.

Think about it, how should a general adding to a fixed spread work if it is in fact fluctuating all the time!?
Fixed spread is always higher than the core spreads you will find in an ECN account. THIS difference is the income for the broker. But not with a fixed value on top, as this is hardly possible since they are hedging your trade AFTERWARDS. For your own one they are the "liquidity source", for external hedges not.

They do not know the price they will get executed on before your trade. They just make sure the fixed spread to core spread difference is large enough to ensure their gain most of the time. By the way your spread will not be fixed anymore during high volatility news or illequild times, as the fixed value exceeds the core spreads in these cases. Here they pass this widening to you to simply avoid losses.

Makes sense, right?

I never heard of floating spread markups to be honest, but there are virtual broker plugins, which execute orders at a fixed slippage value. This can be set for both entry and exit. For ECN accounts the spread you get on your terminal is nearly never the price you will get executed on - that's (regular) slippage (which also affects you TP/SL in contrast to your spread discussion). Based on a "fixed" systematical virtual broker plugin slippage, I would assume they pass it to both sides symmetrically.

Maybe someone else can add or correct me here..

hmmm, I think I got it. Thank you very much.

Spread is essentially the difference between the ask price and bid price of a currency pair. And definitely it is considered as one of the major source of income for the brokers. Thereby from the view point of a forex trader, spread should be lower as possible. But spread does have influence on both buying (buyer) and selling (seller) orders, just a trader needs to think on spread from his own point of view.

I see, you already got your answer! It’s very important to trade with low trading spread, because high trading spread kills traders profit actually.

Yes, I finally got that the spread is very important.
But I have to trade at Cent Account for now because the fund is not enough for my strategy to trade in ECN Brokers...

Sure; if you are comfortable with the cent account, just go for it.