What is a Spread in Forex Trading?

 What is a Spread in Forex Trading?

Understanding the Pip Spread – The spread is closely associated with the pip and has a major importance for you as a trader. It is the difference between the selling and the buying price of a currency pair. It is the difference in the bid and ask price. The ask is the price at which you buy and the bid is the price at which you sell.

Suppose the EUR/USD is quoted at 1.1001 bid and 1.1003 ask. In this case the spread is 3 pips. The pip spread is your cost of doing business here. In the case above it means you sustain a paper loss equal to 3 pips at the moment you enter the trade. Your contract has to appreciate by 3 pips before you break even. The lower the pip spread the easier is it for you to profit. Generally the more active and bigger the market, the lower the pip spread. Smaller and more exotic markets tend to have a higher spread. Most brokers will be offering different spreads for different currencies. Smaller accounts will generally have higher spreads than bigger regular accounts.
From the profitability point of view it is important to find a broker offering a lower pip spread, however the low spread is not everything. More important is to choose a reputable and reliable broker.

The spread that is quoted will vary from broker to broker and also throughout the trading day. It is not fixed and will change according to market conditions. If the market is volatile and moving quickly then the spread will widen, possibly to several pips or more, and then gradually move closer again once the volatility has passed. The reason for this is that your broker has to cover all his or her customers positions, and in a fast moving market the risks are much higher. Some brokers do offer fixed spreads in all markets, and while this may seem attractive when other brokers are widening their spreads during a news release, there are always pros and cons. After all, major news releases are relatively infrequent during the day, and for the rest of the period, a fixed spread broker is likely to be less competitive than a variable spread broker. As always, it is swings and roundabouts.

The 17,000 square-foot Hidden Hills property with mountain views boasts nine bedrooms, includin. master suite with private terrace and an entertainment wing .

Following years of white-hot growth, luxury home prices in Sydney declined for the first time in years, slipping 1% between the second quarter and third quarter of 2018, according to the latest report from brokerage Knight Frank.The nearly 6,500-square-foot apartment has sweeping views.

The property, complete with a 30-seat screening room, a 100-seat amp
hitheater and a swimming pond with sandy beach

She is trying to sell a gated compound in the Golden State. The 17,000-square-foot Hidden Hills property with mountain and city views boasts nine bedrooms, including a master suite with private terrace and an entertainment wing, which includes a 20-seat theater

Lopez has reportedly added to her real estate holdings an eight-plus

  • Struggling to sell one multi-million dollar home currently on the market
  • Lopez has reportedly added to her real estate holdings an eight-plus acre
  • The property, complete with a 30-seat screening room, a 100-seat amphit
  • Lo managed to make it hers for $28 million. As the Bronx native acquires

The 17,000-square-foot Hidden Hills property with mountain and city views boasts nine bedrooms, including a master suite with private terrace and an entertainment wing, which includes a 20-seat theater.

Black farmers in the US’s South—faced with continued failure in their efforts to run successful farms their launched a lawsuit claiming that “white racism”

Leave a Reply

Your email address will not be published. Required fields are marked *