What is a Spread in Terms of Trading and How to Use it to Determine a Reliable Forex Broker

Attention all new traders — a new post of our permanent topic #TopForexTradeAcademy! Today we will tell you what the spread in forex is.

Simply put, the spread in the forex market is the range between the price at which a currency is sold and the price at which it is bought at the same point in time.

To understand what this means we need to imagine two counterparties on the exchange: a seller and a buyer. Each of them bids for the opening of a profitable transaction. The interval between the best bid and ask prices is called the exchange spread.

When choosing a broker, you should not only analyze the reliability of the company but also study the trading conditions. It’s important to remember that profit on the deal is made after the rate of the currency pair, at which the deal is opened, exceeds the value of the spread.

On our website TopForex.Trade you can find the full list of the brokers’ trading conditions, which have been analyzed and collected in the brokerage reviews by our team of experts. Check out our website for all the aspects you will need for profitable trading.

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