SPREAD
What Are Spread in Forex?
To define spread, we need to understand its nature first. Spreads
come as a difference between the ask or buy price and bid or sell
price when trading currency pairs. As a trader, you always see two
major prices:
Note: the ask quote price is generally higher than the
bid quote price (quoted currency is displayed on the right while the
base currency is shown on the left).
Major Types of Spreads
Nothing special here. Traders are going to deal with two major types
of spreads: fixed and variable. The type of spread depends on the
instrument you trade. For instance, fixed spreads are more common
for indices while currency pairs usually come with variable spreads.
When the price changes, the spread changes as well.
