2025-01-29 14:34
IndustrySPREAD IN FOREX
#firstdealofthenewyearFateema
Spread is the difference between the bid price (sell price) and the ask price (buy price) of a currency pair or asset. It represents the transaction cost traders pay when entering a trade.
Types of Spread
1. Fixed Spread
Remains constant regardless of market conditions.
Common in market maker (dealing desk) brokers.
Suitable for beginners and low-volatility trading.
2. Variable (Floating) Spread
Changes based on market volatility and liquidity.
Common in ECN/STP brokers.
Tightens in stable conditions, widens in volatile news events (e.g., CPI, NFP).
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SPREAD IN FOREX
Nigeria | 2025-01-29 14:34#firstdealofthenewyearFateema
Spread is the difference between the bid price (sell price) and the ask price (buy price) of a currency pair or asset. It represents the transaction cost traders pay when entering a trade.
Types of Spread
1. Fixed Spread
Remains constant regardless of market conditions.
Common in market maker (dealing desk) brokers.
Suitable for beginners and low-volatility trading.
2. Variable (Floating) Spread
Changes based on market volatility and liquidity.
Common in ECN/STP brokers.
Tightens in stable conditions, widens in volatile news events (e.g., CPI, NFP).
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