What are pips and spread?

Every new trader has a question what is pip? and what is spread? 

So, I would like to tell those newbies that pips is actually last digit of any currency price, for example, if you see eur/usd pair, and if its price is 1.3022, then the last digit will be called pip, and we use this word pip to evaluate the earnings. 

Now, lets talk about spread, when a trader start trading in meta trader then he see two prices, one is bid price and second is ask price, a trader will see the difference between bid and ask price, for example if the price of Eur/usd is 1.3022 in bid, then the price of ask will be 1.3025. Now, when a trader open an order of 1$ trading volume, then he will see minus 3 (-3) in his status bar, this is the spread that a trader pay to broker when he open an order. and if you want to earn money then you will have to cover that spread first then above that spread will be your profits, if you close that order.

In this picture you can see bid and ask prices, you can also see the currency pairs name. There are some categories of currency pairs, some of them are in major pair group, some of them are in minor, some of them are called crosses. If you see the spread difference then you will find major pairs have low spread, the spread will increase when you trade in minor, and the spread may go up to 350 pips according to currency pairs. Most of the traders prefer to trade with major pairs, because of its volatility, the high fluctuation, the high earning.

This picture has been taken from instaforex broker, and this broker has almost 350 pairs to trade, so I like this broker very much due to hundreds of pairs to trade.