What is a forex spread, how is a forex spread calculated

The forex spread is the difference between the ** price and the ask price. Because traders tend to trade one currency for another, forex trading currencies tend to be made against what is currently in comparison to another. For convenience, these currencies are written in pairs, such as the Australian dollar US dollar (AUD US dollar - where the Australian dollar is the "base currency" and the US dollar is referred to as the "counter currency".

The spread situation of the forex platform is not the same.

Currently, the ** spread for interbank transactions is 2-3 pips; According to their own conditions, the best spreads between banks (or dealers) and customers are quite different, or even several times, which is mainly determined by the degree of regional foreign exchange business development and the difference in transaction processes.

At present, the ** spread of foreign regular margin traders is about 5 points, Hong Kong is about 6-8 points, and the real trading of domestic banks ranges from 5 to 40 points (the large trading volume will be a little worse).

Spreads are a little lower.

The wider the spread, the higher the seller and the lower the buyer. Therefore, when you **, you need to pay more, and when you sell, you get less, which makes it difficult to make a profit.

It's actually quite simple, what is a spread? The so-called spread is the difference between the market bid price and the market ask price. For example, the **:

The bid price displayed at that time was, and the bid price displayed at that time was, with a difference of one point in between, which is the so-called forex spread. It's also the handling fee you need to pay to the FXCM platform when you make an order! FXCM account opening, FXCM **Consulting**Customer Service FXCM Huang Yong.

Now there are two kinds of spreads in the foreign exchange market, and foreign exchange spreads are divided into two categories: fixed spreads and floating spreads. The fixed spread of the main currency pairs on the regular platform is generally 2-5 points, and the point value of the fixed spread is fixed, which is also the best way of the common market maker model! The floating spread of the platform is determined according to the size of the trading volume in the market at that time.

When the ** is cold, the spread will be relatively small. Floating spreads are also common in the STP No Dealing Desk** model. Floating spreads are based on the ** at the time.

And many factors are calculated, which is the most conducive to customer transactions among all banks**.

The spread is the difference between the ** price (bid) and the ask price (ask). The smaller the spread between the price and the ask price, the smaller the cost for the investor.

In addition, it is necessary to memorize the definition of the base point. A spread of 3 pips means a change of 3 basis points. The industry generally thinks so:

All currency pairs can be divided into two types, one with the Japanese yen and one with the non-Japanese yen. If a currency pair carries the Japanese yen, such as GBPJPY, the movement is one basis point. The latter, such as EURUSD, is a change of one basis point.

Take EURUSD as an example: ** price (bid) is, ask price (ask) is, and there is a 3 pip spread between the bid and ask prices. If you want to **eur at this time, you will be in the deal, and the profit and loss will be displayed as 3 points, that is, the loss value of -30 US dollars (3*$10=$30).

After long-term trading, the size of the spread has a greater impact on the overall profit and loss of ** investors, and has almost no impact on medium and long-term investors.

The spread is the difference between the ** price and the ask price.

It depends on what kind of currency, product.

Some platforms have fixed spreads, while others are floating.

There is no accurate value, and the algorithm is the spread value that the bid and ask price wants to subtract.

In forex trading, there is a ask price and a ask price for a currency pair, and the difference between the two is the spread. It is the transaction cost that a trader needs to pay to the broker or forex platform. Because forex brokers don't charge any commissions or fees, the spread is their profit**.

Generally speaking, it is relatively normal for the original spread account to fluctuate by 2 to 3 pips, while ** is usually around 5 pips. For low spread accounts, it is even lower. For real-time spreads, traders can log in to their trading software to view.

There are two ways to charge spreads, one is a fixed spread and the other is a floating spread. The specific value of the spread varies according to the changes in the market.

Assuming that the ** of the euro is, the difference between the fourth decimal place is 3, and this 3 is the spread of the euro against the dollar. Whether it is 1 lot or a hand, the current spread in Europe and the United States is 3 points. But the amount corresponding to 1 lot and the lot is not the same, in the case of 1 lot, a point is about $10 in points, 3 points is 30 dollars, and in the case of a lot, a point is about 1 dollar, and 3 points is 3 dollars.

It's such a relationship.

The spread is, the difference between the ** and the actual ** of the disk that you place an order, the main test of making money on the regular foreign exchange platform is the spread, the spread is not calculated, it is how much money each platform sets from the trader's transaction.

In forex trading, you'll see a two-sided ** that consists of a bid price (ask) and a bid price (bid). The bid price represents the price at which you can ** the base currency (while selling the non-base currency); The Ask price represents the price at which you can sell the base currency (and at the same time**non-base currency). The difference between the bid price and the ask price is the spread, and the trader makes a profit through the spread between buying and selling.

EUR USD with a 3 pip spread can be expressed as ; The spread of 3 pips in USD JPY can be expressed as .

Summary. Different trading varieties of each trading platform, the spread is also different, for example, EURUSD Europe and the United States, the spread of Europe and the United States is 13, that is, 1 lot of 100,000 currency units, then the total spread of 1 hand is, the minimum can be traded, if the trading lot, the spread is 100,000 * US dollars.

Different trading varieties of each trading platform, the spread is also different, for example, EURUSD Europe and the United States, the spread of Europe and the United States is 13, that is, 1 lot of 100,000 currency units, then the total spread of 1 hand is, the minimum can be traded, if the trading lot, the spread is 100,000 * US dollars.

The foreign exchange platform is divided into two categories, one type of spread is fixed, and the spread in Europe and the United States is generally around. The other type of spread is fixed, and the spread in Europe and the United States is generally about 2 points.

Summary. The regular platform foreign exchange spreads are basically the same, Europe and the United States 2 3 points, ** generally about 5 points, other too high or too low are not recommended.

The spread is a trader's means of profit, if it is too low, it will inevitably gain benefits from other places, and these other places are what we investors do not want to see, so there may be a lot of tricks. The spread is the investor's transaction cost, from this point of view, of course, the lower the better, Europe and the United States are higher than 3 points, ** more than 5 points do not need to be considered at all. In short, the spread is only the basis of trading, and the difference between different platforms will not exceed 1 point, the important thing is to find a platform that you like and suit yourself.

The spread of forex is generally what is the price.

The regular platform foreign exchange spreads are basically the same, Europe and the United States 2 3 points, ** generally about 5 points, other too high or too low are not recommended. The spread is a trader's means of profit, if it is too low, it will inevitably gain benefits from other places, and these other places are what we investors do not want to see, so there may be a lot of tricks. The spread is the investor's transaction cost, from this point of view, of course, the lower the better, Europe and the United States are higher than 3 points, ** more than 5 points do not need to be considered at all.

In short, the spread is only the basis of trading, and the difference between different platforms will not exceed 1 point, the important thing is to find a platform that you like and suit yourself.

What about adding 2 pips to the fee? High or not.

Not too high. It mainly depends on how often you trade.

Glad for your reply、How can I find out if the platform is legitimate?

Why are the spreads low on the platforms I found in Huichacha and WikiFX? Are those platforms reliable?

The domestic banking platform is regular, but the spread is too high.

The spread is the difference between buying and selling when doing foreign exchange trading. In layman's terms, it is the transaction cost, that is, the profit of those foreign exchange platforms and banks**. Many investors prefer to choose a platform with low spreads, which is to save themselves trading costs.

The spread in foreign exchange is simply the difference between the ** price and the selling price, commonly known as the foreign exchange transaction fee, that is, the transaction cost.