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RISK WARNING:

Trading of complex financial products, such as Stocks, Futures, Foreign Exchange (‘Forex’), Contracts for Difference (‘CFDs’), Indices, Options, or other financial derivatives, on ‘margin’ carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any of these markets you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full ‘General Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’.

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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