Hi,
I have started to learn with School of Pipsology and I like how the information is presented, as for beginners.
However, in this lesson “School of Pipsology - Preschool - Buying And Selling Currency Pairs” the word “spread” is used, but it is not explained at all what it means.
It would be useful to have an explanation for the spread there, because we beginners can easily give up if we don’t understand what we are reading.
Thank you.
The spread is the difference between the two prices at which the broker will allow you to buy or sell a forex pair. The broker allows you to buy at the ask price if you want to go long (or if you want to close a short position). The broker allows you to sell at the bid price if you want to go short (or to close a long position).
The ask price is always higher than the bid price: the difference is the spread.
Think of these two prices as the two prices that a shopkeeper has to consider in order to make a profit. The shopkeeper has to buy goods to put in his shop to sell to you. Obviously he will pay less to buy these goods than he charges you to buy them. The difference is his profit.
Note that the spread can change rapidly and by a large amount during the 24-hour day when forex is traded.
Thank you for your explanation about “spread”.
Would it be useful if there was an explanation in that course as well, considering that this word “spread” was used ?
I would be delighted if the content editors wanted to incorporate some of my post on spreads.
Hahaha. As if the rest of us don’t know anything about not understanding forex!
This forum is filled with beginners. Every single one of us crossed things we didn’t understand. But we’re still here because we didn’t give up. Especially not because of a word that could have easily been defined by a google search.
If you give up easily, you have a low tolerance for challenges.
I suggest you toughen up your leather. You have more challenges ahead of you.
@dushimes Interesting how you approached my idea, which was actually a help for all beginners who start learning from the School of Pipsology course, not for those who have passed the beginner level.
It is obvious that we can find any information about Trading / Forex on Google, but does that mean that there is no longer any point in having the School of Pipsology course? The difference is that on Google, the information is scattered, but in the School of Pipsology course all the information is put together in one place, for beginners, and that is why it is useful to have complete information in the School of Pipsology course, so that there is no need to search on Google.
I am aware that searching on Google is not an obstacle, but what will follow in the real “career” of trading.
You didn’t ask about an entire course. You asked about the definition of a very basic word. In the time it took you to make this thread, you could have looked it up yourself.
Be strong, young padawan.
Ahhh it looks like you’re just a bit too early in the school! There’s a full lesson on spreads (I found it by googling hehe)
Yes, so the order of lessons about spread it seems like to not be okay…
Maybe they can link that word to this lesson?