What is spread in trading forex

A spread in forex trading is simply defined as the price difference between where a trader may purchase (buy) or sell an underlying asset.

In finance, a spread can have several meanings. They all refer to the difference between two prices, rates, or yields.

Spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond, commodity, forex, indices and cryptos (cryptocurrency terms).

A spread position is entered by buying and selling equal number of options of the same class.

Zero spread-accounts are trading accounts offered by brokers that have no difference between the bid and ask price.

Such accounts allow traders to know in advance what their entry and exit levels will be when they open positions.

A buy or sell spread is estimate of the costs associated with the purchase of fund assets in connection.

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