We traders are very well known with these two terms. However; for the new babies it is essential to understand the importance of these terms. Spread is a form of broker's income which represents the difference between bids and asks price of a currency pair. The lower the spread, the better it is for a trader. And leverage shows the effective amount that a trader can borrow from his trading platform against initial margin in his accounts. The greater the leverage the better it is for a micro trader.