Could someone please explain what is spread? and how do I overcome spread to make profit from a single trade? It will be very helpful if you use examples to explain.
A spread is the difference between the bid and ask.
If on the eurusd the bid is 1.3005 and ask is 1.3007, then the spread is 2 pips.
To make a profit, you need to make more than 2 pips. Thus if you make 5 pips, you pay the spread of 2 pips, you would net a profit of 3 pips.
Perfect, Thanks a lot. The answer is clear cut and I had no problem to understand the answer. Many thanks again.
Fartist gave you good explanation on you question. In addition, when are looking for a forex broker you should look for those who are offering tied spreads.