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Define forex spread

define forex spread

as possible at the price you expect or a better one. Obviously, your cost goes up by the number of currency lots you are trading. Get one-on-one support from a trained Market Strategist. It is all based on supply and demand, just like any other market. There is so much more to be said about Forex trading spreads, such as whether a broker offers fixed or variable spreads and which is better for the trader. .

define forex spread

Fixed spreads are set by dealing companies for automatically traded accounts. Now, that we established that as attractive as Forex trading is, it is not completely cost free, let's understand the difference between Forex spreads and stock market commissions. These include higher liquidity, more volatility, greater leverage, as well as lower trading commissions and costs. Understand what is spread in forex trading by considering the following example. High spread values in only tolerable in highly volatile currencies. That means to see what it costs, you have to multiply the spread in pips by the pip cost per 10K lot of currency, giving you the spread cost per 10K. . This means that if the spread.0004 or 4 pips it can cost the average Forex trader 400 GBP or USD or whatever currency they are trading. Successful trading strategy is based on effective evaluation of market indicators and specific financial conditions of a deal. Dont think, though, that Forex brokers make their money by charging spreads and commissions. The difference between ASK and BID is called spread. View our performance, your ticket to the forex market.

Spread is traditionally denoted in pips a percentage in point, meaning fourth decimal place in currency"tion. An exchange rate, applied to a customer willing to purchase a" currency is called BID.

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