What is spread in forex ?
In Forex trading, the spread is the difference between the bid (selling) price and the ask (buying) price of a currency pair.
In Forex trading, the spread is the difference between the bid (selling) price and the ask (buying) price of a currency pair. It represents an implicit trading cost not explicitly stated but incurred by traders during transactions. Spreads are either fixed or variable, depending on market volatility and the chosen broker. A narrower spread indicates lower trading costs, while a wider spread can increase trading expenses. Traders should opt for brokers offering narrower spreads to reduce costs and enhance profit potential. Additionally, understanding spreads helps traders plan their strategies more effectively, improving their chances of profitability.
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