what is spread

In online trading, spread is the difference between the ask price and the bid price of a financial instrument. In market theory, the spread is the difference between the currently higher price a bidder is offering and the currently lowest price a seller is asking for. The spread is a part of the cost of trading for every trader. I am trading with trade24 broker and their spreads are comparatively quite low.

In forex trading spreads are very effective and powerful tool which help the traders to make money. Traders are well known about trades. Because without understanding the spreads you cannot apply it properly. Spreads are always variable. It is the difference between the ask price and the bid price. Ask price is in which traders wanted to sell the currency and the bid price is in which currencies are bought. I prefer ECNCAPITAL to trade with lowest spreads.

Spread is a commission taken by brokers. The amount of this commission differs from broker to broker. This is mainly the difference between ask and bid price. If the spread remain low then it is really helpful for a trader. Trade12 offers a low spread in most of their pairs. They take less than 2 pips in their platinum account and take less than 1 pip in their silver accounts. It is helpful to me to make a better profit.

A spread is the difference between the bid and the ask price of a security or asset. One of the uses of the bid-ask spread is to measure the liquidity of the market and the size of the transaction cost of the stock. The spread trade is also called the relative trade. Spread trades are the act of purchasing one security and selling another related security as a unit. Trade24 offers fixed or variable trading spreads.