Hi all,
I was just reading the baby pips notes and I saw this sentence: “Some brokers may guarantee execution but do not guarantee spreads, and during news events you�ll see spreads widen dramatically (I�ve seen a 3-pip spread turn into a 14-pip spread during a report).”
Can someone explain to me what a spread is and what excecution is in simple language.
I would really appreciate that
have a read, it might help:
spread- the spread is the amount of pips between the buy and sell price for each currency. if the broker does not have fixed spreads, the spread can become very wide during news events and other times of low liquidity.
execution- when you click buy or sell, if your order is filled at that price, then it was executed. during high volatility timse the order can sometimes be slipped to a different price, and sometimes will not be filled at all, resulting in a [U]requote[/U].
if you stay away from news trading, you wont need to worry about that yucky stuff.