Spread (Forex)

The point difference between the bid and ask price. The difference between the bid and ask price is the broker’s commission in a forex trade. Market prices are quoted with two prices: the bid on the left and the ask on the right. If the EURUSD is quoted as 1.2980/2983, then the spread is the difference between these two prices (measured in pips), and this is 3 pips. The lot size of the trade will determine the financial value of the spread of a currency. Spreads are lower in liquid currency pairs (such as EURUSD) and much higher in illiquid pairs such as EURNOK.

By |2018-09-04T15:13:51+00:00September 4th, 2018|0 Comments

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