What Is forex spread, and How to calculate it? Beginners need to know.

[GriderGlib]

Thank you for posting this! This information about spreads is so good to understand and learn. The way you’ve explained here is also easy and amazing!

 

[skrimon]

If I put it simply, The forex spread is the difference between a forex broker's sell rate and buy rate when exchanging or trading currencies. Spreads can be narrower or wider, depending on the currency involved, the time of day trade is initiated, and economic conditions. Anyways, these sorts of basic terms are pretty well explained in your broker's educational area. Since I trade with AssetsFX, I really don't need to google the basic aspects such as this.

 

[Retropulssion]

Thank you for the informative post. Beginners often forget to consider spreads when they plan their strategy. So a strategy that was profitable in demo trading does not give expected returns in live trading due to spreads. That is why it is important to consider spreads whenever we take up a trade in forex.