A spread is simply defined as the price difference between where a trader buy or sell an asset.
To find the total spread cost, we will know need to multiply this value by pip while considering the total amount of lots traded.
It’s important to note that the fx spread can vary over the pairs. It is betting allows speculation on the movements of the selected currency without actually transacting in the forex exchange market view.
The three components to a forex spread bet are direction of the trade, trading size (lot), and instrument to be traded.
We know how currencies are quoted in the market. So, we can calculate their spread and make the forex strategies.