What is Spread ?
A spread in trading is the difference between the buy (offer) and sell (bid) prices quoted for an asset. The spread is a key part of CFD trading, as it is how both derivatives are priced.
Many brokers, market makers and other providers will quote their prices in the form of a spread. This means that the price to buy an asset will always be slightly higher than the underlying market, while the price to sell will always be slightly below it.
Spread can have a variety of other meanings in finance but they all refer to the difference between two prices or rates. For example, it is also a strategy in options trading,* known as an option spread. This involves buying and selling an equal number of options with different strike prices and expiration dates.
How do you calculate the Spread?
Spread = 12614 -12612 = 2 pips
Why are so important Low Spreads ?
High SpreadsWide spreads can be the result of low liquidity or high volatility. Exotic pairs that are not as frequently traded will typically have wider spreads.
Low SpreadsLow spreads can be an indication of high liquidity or lower market volatility. Spreads are typically lower in market sessions and outside of economic news announcements.
3 Easy Steps
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log in to your Client Area
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Once your documents are approved,
create a Live Trading account with MetaTrader5.
Make A Deposit
Select a payment method,
fund your trading account and start trading.