What is spread in forex as a beginner
spreads is a major financial tool in Forex , generally by spreads broker earn their profit . as beginner you should choose low spreads to understand the movement.
Here’s an example: The market price is 100. The broker will quote two prices, a buying price of 101 and a selling price of 99. The broker’s spread is a range of 2.
When volatility is low you could expect the spread to widen, and vice versa when it’s high volume. You will find that brokers always take a cut even on zero spread accounts where they’ll charge a commission.
The conclusion is that FX trading is a negative game, whether you buy or sell.