What is a Spread and Why Does it Matter?

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What is a Spread and Why Does it Matter?

Postby kreslik.news » Mon Feb 29, 2016 11:59 am

In the Forex Market, a spread is the difference in pips between the BID price and the ASK price quote (Buy/sell) in a currency pair such as the EUR/USD. A spread is also the easiest way for many brokers to get compensated for each transaction the customer makes through their trading platform. This is the simplest way to understand what a spread is: EUR/USD is priced at 1.1500 the broker will offer it for 1.1501 to buy or sell at 1.1499.

The trading price for any currency pair is expressed by the combination of the symbols that make up the currency pair as well as the ... (read more)

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