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What is spread in Forex trading

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Spread is the difference between the bid (sell) price and the ask (buy) price of a currency pair. This is how brokers make money in Forex trading.



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In Forex trading, the spread is the difference between the buying price (ask) and the selling price (bid) of a currency pair. It represents the cost of trading and can vary depending on market conditions and the broker's pricing structure.

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The spread in forex trading is the difference between the bid price (the price at which you can sell a currency) and the ask price (the price at which you can buy a currency) of a currency pair. It represents the cost of trading and is typically measured in pips. For example, if the EUR/USD bid price is 1.1000 and the ask price is 1.1002, the spread is 2 pips. Traders must account for the spread when entering and exiting trades, as it affects overall profitability.

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In forex trading, the spread is the difference between the bid and ask prices of a currency pair, representing the broker's profit margin. Spreads can be fixed or variable and vary based on market conditions. Tight spreads are preferred as they reduce transaction costs, making it important for traders to understand spreads to assess trading expenses effectively.

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