Spreads

Focus on real trading with super tight spreads.

What is a spread?

Every market has a spread and so does Forex trading. As a Forex trader, it is imperative that you get acquainted with the spreads as it is the primary cost of trading between currencies.

So essentially a spread is the price difference between the Bid and the Ask price of an asset.

Bid Price

SPREAD

Ask Price

Bid Price

SPREAD

Ask Price

Bid Price

SPREAD

Ask Price

Bid Price

SPREAD

Ask Price

spread

Example:

A simple calculation of the spread for the EURUSD is as follows:

Assuming that the buy price is at 1.04568, we would subtract the sell price of 1.04557. The sum of the subtraction in this case would be 0.00011. Therefore, your spread would be .00011 (Spread) or 1.1 pip.

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