What is the Spread?

by Jun 29, 2020Trading Guides

What is the Spread?

The spread is the differences between two prices. In this case, it’s the difference between the buy (bid) and the sell (ask) price. In forex exchange, the spread is likely to be the commission charged by the broker/ or the liquidity provider for providing filing the buy/sell order.

The spread in forex is measured in “pips”, which is the smallest unit of the price movement of the currency pair. One pip is equal to 0.0001. Therefore, a 2 pip spread between the EUR/USD would be 1.1050 / 1.052

 

 

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