• Header banner 1

See an example in Bellow we being calculated for the EUR/USD. The spread is actually measured pips, most currency pairs, one pip is equal to 0.0001. Forex pips is calculated as the smallest unit of the price movement of a forex currency pair.

Understanding the Forex Spread

One of the important topic is ‘Forex Spread’ is forex traders. See how forex spread work and how affects you.

What is Spread in Forex Trading?

Forex spread is a quote between the two different currency pairs, it is the bid and ask price.

The bid price: is a sale base currency in which you can buy the price. 

The ask price: is a buy base currency in which you can buy the price.

So, the difference between the bid price and ask price is known spread.

See an example in Bellow we being calculated for the EUR/USD. The spread is actually measured pips, most currency pairs, one pip is equal to 0.0001. Forex pips is calculated as the smallest unit of the price movement of a forex currency pair.

So like a quote of the EUR/USD currency pair is, bid = 1.5709 and ask = 1.5712. Then the quote tells the spread of 3 pips.

But, in the Currency pair Japanese yen quoted to only 2 decimal places without there are fractional pips, then its 3 decimals.

Such as EUR/JPY would be 150.00/154.04. Then the spread is 4 pips.

Types of Spreads in Forex

Actually the spread type depends on the broker and how the forex broker makes money. The type of spread you can see on the broker trading platform.

Usually, there are two types of spreads:

One is Fixed spread and another one is Variable spread, the Variable spread is also known as floating spread.

What is Fixed Spread in Forex?

Forex brokers who operate as dealing desk model or work as a market maker, they offer Fixed spreads.

It depends on market conditions at any given time. A market maker or dealing desk broker buy large positions and offers smaller sizes. They buy large positions from the liquidity providers and offer smaller sizes to their clients/traders.

Dealing desk broker offers fixed spreads, they can control the prices they display to their clients.

Advantages of Trading With Fixed Spreads

Trading with fixed spreads is very interesting for some traders because fixed spreads have smaller capital requirements.

So who is a beginner or don’t have a lot of money, he/she can start forex trading with the fixed spread. Actually it’s an accessible choice for traders.

And the best thing is that it makes more predictable transaction costs.

Disadvantages of Trading With Fixed Spreads

The bad thing about the fixed spreads is the price comes from only the broker, which means it’s a single source.

Forex market is unpredictable, their prices are rapidly changing and the market is volatile also. Since the spreads are fixed and the forex broker cannot broaden to make it sweet for the current market conditions or requirements.

Another problem is the slippage. When the market moves fast the broker cannot control the fixed spreads. When you will complete a trade the price will be different from the starting trade price.

So sometimes experts say it’s similar to the negative attraction but different.

What are Variable Spreads in Forex?

As the name, you can guess the variable spreads mean continuous changing spreads.  The variable spreads are the difference of constantly price changing between the bid price and the ask price.

All brokers who work as non-dealing desk model, they offer the Variable spreads and have no control over it. This why spreads will broaden or tighten depends on the market volatility and supply and demand of currencies.

Advantages of Trading With Variable Spreads

The variable spreads give a good experience for the different market conditions.

Also, if you are looking for a transparent price, the variable spread is the best choice. Due to market competition, the best price comes from multiple liquidity providers.

Disadvantages of Trading With Variable Spreads

Scalpers don’t love variable spreads. The fixed spreads are ideal for them. Due to the behavior of variable spreads, the winded spreads can quickly eat into whole profits.

And, it’s not good for news traders. News traders always avoid variable spreads because it has broadened spreads.

A lot of profit turns into loss within a blink of an eye.

Fixed vs Variable Spreads

If you are thinking about which spread is the better, the answer depends on you.

Actually spreads are depend on the traders. Already you know that which types or categories traders love which spreads.

It’s similar to Milk! How?

We knew milk is an ideal food but everybody don’t love food. Which food human do love, it depends on the human character.

The spreads are also similar to the trader character, which things they are trading.

Due to the market conditions and characteristics of trading instruments, fund amount and generating profit traders love both fixed and variable spreads.

So, there are many traders who find, choose and love fixed spreads and many traders also love variable spreads.

Usually, traders who trade with smaller funds and trade less frequently trade with the fixed variables.

And traders with larger funds and trade frequently they love variable spreads.

Also, due to trade execution time, sometimes traders are avoid fixed spreads because it cannot provide fast trade execution.

How to calculate the spread cost?

Now, already you know that what is the spreads (the difference between the ask price and bid price) and the types of it.

The calculation of the spread cost is pretty easy. Look bellow how the cost does calculate:

We can calculate spread in two different ways:

Pip value: the actual value per pip and

Lots number: the number of lots you/trader are trading

Sea the quote of EUR and USD.

In this quote, you can buy EURUSD at 1.23720 and sell EURUSD at 1.23706.

So, if you buy it will close within a few secs and then the result will be 1.4 pips loss.

So the cost will come after multiplying the cost per pip by lots you’re trading.

Here, if you trading 10,000 units (mini lots), the value is $1 the cost would be $1.40.

Lots number Way

In the image the pip cost is linear. Here we have to calculate the cost through the number of lots of trading.

Like if the spread is 1.2 pips and you trading 5 mini lots, then transection cost would be $6.

#What is Spread in Forex Trading?,

Comments (265)

QwueteThursday 28th of April 2022 04:28 PM
red dog casino - slots free paper writer

HrjhtqThursday 14th of April 2022 09:51 PM
order generic doxycycline - doxycycline for sale online buy aralen online cheap

ZygbxrSaturday 02nd of April 2022 08:54 AM
provigil pill - buying ed pills online buy best erectile dysfunction pills

NlxbkkFriday 01st of April 2022 10:17 AM
generic cialis india - viagra cialis otc cialis

OzmvxrThursday 24th of March 2022 04:46 AM
zetia canada - purchase ezetimibe generic purchase citalopram online

QczeovSunday 20th of March 2022 01:24 PM
generic cialis cost - order tadalafil pills buy cenforce without prescription

YlbryySunday 13th of March 2022 04:05 AM
stromectol xl - ivermectin drug ivermectin price canada

TmdcjhSaturday 26th of February 2022 10:16 PM
sugarhouse casino online - no deposit bonus codes prednisone cost

LegkmmWednesday 26th of January 2022 04:37 PM
tadalafil max dose - price of cialis purchase stromectol online

WgjwsyMonday 24th of January 2022 09:17 PM
cheap chloroquine - canadian viagra online pharmacy sildenafil generic

NeqpxtThursday 23rd of December 2021 10:07 PM
order plaquenil pills - cenforce us buy valacyclovir without prescription

MrpsbmWednesday 22nd of December 2021 07:28 PM
is generic vardenafil real - orlistat medication order orlistat online

AcpammSunday 19th of December 2021 12:56 PM
cheap levothyroxine tablets - over the counter cialis order cialis

OvvwytSaturday 11th of December 2021 02:49 AM
buy ed pills us - buy accutane pills online can i buy accutane online

PmnizsThursday 09th of December 2021 05:05 PM
where can i buy ivermectin - recommended canadian online pharmacies drug store

EvlfzwWednesday 08th of December 2021 11:55 AM
where to buy cialis online in usa - cialis tadalafil online pharmacy no rx

TmmezyFriday 03rd of December 2021 05:45 AM
best online casino for money - luckyland slots real casinos online no deposit

KfmnyuTuesday 30th of November 2021 01:38 PM
canada drugs - order erythromycin for sale canadian pharmacy rx

ExuxgwMonday 29th of November 2021 05:18 AM
research papers writing - my favorite writer essay custom research paper writing

LgdkyzSaturday 27th of November 2021 06:20 PM
methylprednisolone over counter - buy medrol canada medrol buy

EbfilmFriday 26th of November 2021 06:01 AM
ed remedies - buy ed meds top ed pills

FfdmuwMonday 22nd of November 2021 03:48 PM
tadalafil india generic - Buy generic viagra online viagra online no script

HbqjmeSunday 21st of November 2021 05:24 AM
ivermectin over the counter - stromectol lotion cost buy stromectol online uk

SpdkxmFriday 19th of November 2021 05:48 AM
online slots - casino online online casinos real money

RvhdcgFriday 12th of November 2021 04:25 AM
best ed drug - cheap erectile dysfunction buy ed pills

KtkqgzWednesday 10th of November 2021 08:59 PM
canadian pharmacy spam - canadian pharmacy king cipa canadian pharmacy

UufbphMonday 08th of November 2021 05:53 AM
online casino usa real money - online gambling real casino online

stromectol for saleSunday 07th of November 2021 12:17 PM
gastro related diseases causes arthritis stromectol over the counter stromectol stromectol stromectol for sale stromectol for sale stromectol tablets

myfreedoctorivermectinWednesday 03rd of November 2021 01:23 AM
molnupiravir ivermectin ivermectin cream cost how much does ivermectin cost

KpgdtcWednesday 03rd of November 2021 01:03 AM
accutane purchase uk - buy isotretinoin accutane medication price

myfreedoctorivermectinMonday 01st of November 2021 05:53 PM
ivermectin tablets for humans australia generic ivermectin cream stromectol buy uk

KcxjrrMonday 01st of November 2021 10:29 AM
prednisone generic cost - prednisone medication prednisone prices

HqojtrThursday 28th of October 2021 12:33 PM
canadian pharmacy ltd - canadian pharmacy king online pharmacy

AdblbbWednesday 27th of October 2021 12:51 PM
ivermectin online - ivermectin coronavirus buy ivermectin for humans australia

ivermectin for humansTuesday 26th of October 2021 12:33 PM
gastrointestinal infection asthma statistics ivermectin tablets ivermectin for humans ivermectin for humans ivermectin for humans stromectol stromectol

MenehdSunday 24th of October 2021 08:57 PM
cheap viagra for sale - site can you buy viagra canada

BbhjwhSunday 24th of October 2021 03:56 AM
term papers for sale online - custom research paper writing edit my paper

DuyeqmSaturday 23rd of October 2021 05:07 PM
college essay assistance - academic writing is letter editing

FgfdlfFriday 22nd of October 2021 02:31 PM
real money online casinos usa - free slots online online casino games

WyxoloFriday 22nd of October 2021 05:00 AM
online slots for real money - casirealgam best online casino usa

BwvxsrThursday 21st of October 2021 01:17 PM
ivermectin usa - ivermectin for humans for sale stromectol where to buy

VxvcxlWednesday 20th of October 2021 08:58 PM
cost ivermectin - stromectol drug is ivermectin a prescription drug

NvakdtMonday 18th of October 2021 11:04 PM
generic cialis cheap - site buy generic cialis online safely

KkhfknSunday 17th of October 2021 09:38 PM
average cost of cialis in canada - cialis otc tadalafil coupon discount

JorptdSaturday 16th of October 2021 09:39 PM
generic female viagra in india - viagra canada prescription

IwlwudWednesday 13th of October 2021 02:44 PM
buy ivermectin nz - buy stromectol usa ivermectin india

online pharmaciesWednesday 13th of October 2021 08:37 AM
arthritis explanation asthma control test online pharmacies online pharmacies online pharmacies

MsnkjnTuesday 12th of October 2021 10:22 PM
how to buy stromectol - purchase stromectol ivermectin medicine

FbxvthTuesday 12th of October 2021 12:32 PM
stromectol generic name - ivermectin tablets stromectol xl

FurmllMonday 11th of October 2021 05:16 AM
online pharmacy meds - cialis cost cialis online pharmacy us

GojywtFriday 08th of October 2021 01:03 PM
ez pharmacy - what is cialis medstore online pharmacy

PjdcjoThursday 07th of October 2021 11:13 AM
viagra online order usa - sildenafil online viagra for sale onlin clomid baby clomid wiki how to order clomid online

canadian drugstoreWednesday 06th of October 2021 04:57 PM
arthrit what can cause hair loss online pharmacies canadian drugstore online pharmacies

stromectol for saleWednesday 06th of October 2021 04:57 PM
what cures arthritis hair loss women treatment pierre kory ivermectin can humans take horse ivermectin ivermectina bula ivermectin cream walmart legitimate mexican pharmacy online ivermectin paste

ivermectin australiaWednesday 06th of October 2021 07:57 AM
acute allergy symptoms wrist arthritis ivermectin for humans what is stromectol used for ivermectine how to buy ivermectin ivermectin for sale uk ivermectin tablets cost

IscaupTuesday 05th of October 2021 09:53 PM
cost of stromectol - ivermectin pills canada ivermectin cost in usa

TtwadhTuesday 05th of October 2021 12:18 AM
alli or xenical - orlistatpl alli vs xenical

online pharmaciesMonday 04th of October 2021 08:07 AM
cause of hair loss in males therapy and medication online pharmacies online pharmacies online pharmacies

MlqudcSaturday 02nd of October 2021 05:32 PM
plaquenil eye problems - prednisone drug price of deltasone

WmvmjcFriday 01st of October 2021 05:56 AM
vardenafil coupon - vardenafil canada can i buy ed pills over the counter

ivermectin onlineThursday 30th of September 2021 04:52 PM
ivermectin pills for sale stromectol over the counter

MiptsbThursday 30th of September 2021 03:59 PM
generic cialis vardenafil - pharmacy online store best pills for ed

FttpqrWednesday 29th of September 2021 12:41 AM
generic viagra for sale in canada - Buy cialis in us generic cialis online canada 27th of September 2021 09:54 PM
ivermectin generic cream stromectol price 27th of September 2021 05:16 PM
stromectol price invermectin

SkqbpfMonday 27th of September 2021 10:56 AM
ivermectin tablet - ivermectin australia ivermectin tablets for sale walmart 26th of September 2021 08:16 PM
stromectol tablets buy stromectol online

ZkfuxiSaturday 25th of September 2021 02:45 AM
accutane sale uk - where to get accutane cheap where can i get accutane uk

OdlsjrThursday 23rd of September 2021 11:40 AM
buy tadalafil generic online - buy tadalafil online purchasing tadalafil online

online clomid prescriptionThursday 23rd of September 2021 02:05 AM
get clomid online vog New

SehfhqWednesday 22nd of September 2021 04:22 PM
buying sildenafil online - buying sildenafil online what is sildenafil

hydroxychloroquine for saleTuesday 21st of September 2021 09:59 PM
git disturbances dandruff hair loss hydroxychloroquine online hydroxychloroquine dosage hydroxychloroquine over the counter

EatdmxTuesday 21st of September 2021 10:10 AM
ivermectin cost uk - cost of ivermectin cream ivermectin oral

ivermectin for saleMonday 20th of September 2021 09:43 PM
home allergy test what symptoms can allergies cause ivermectin for humans ivermectin over the counter stromectol ivermectin ivermectin for humans ivermectin tablets ivermectin for humans

QzbhcyFriday 17th of September 2021 03:43 AM
how to buy cytotec - cytotec pills for sale online cytotec prescription drug

FtprcsThursday 16th of September 2021 08:48 AM
albuterol sulfate inhaler - albuterol sulfate inhaler ventolin uk price

KnfddgWednesday 15th of September 2021 10:16 PM
ventolin inhaler - albuterol sulfate inhaler ventolin generic

stromectol for saleWednesday 15th of September 2021 12:53 AM
ivermectin human order stromectol online

YwwrvaFriday 10th of September 2021 11:11 AM
cialis pills india - Buy online cialis buy daily cialis online

WtdiqgThursday 09th of September 2021 03:10 AM
can i order viagra online - Buy viagra from canada viagra medicine price in india

LxmijuTuesday 07th of September 2021 06:59 PM
buy essay now - essay writing help help with term papers

MyzlbyTuesday 07th of September 2021 08:42 AM
write essays for money - english essay help help writing paper 05th of September 2021 10:08 PM
generic ivermectin cream

DhigufSaturday 04th of September 2021 04:07 PM
buy amoxicillina noscript - buy amoxicillin online amoxicillin pill

CwxueqFriday 03rd of September 2021 09:00 PM
where to purchase accutane - how to get accutane australia accutane for sale uk

DfwqvhMonday 30th of August 2021 01:34 PM
buy vardenafil on line - cedric vardenafil generic vardenafil reviews

LjcqrmSunday 29th of August 2021 10:41 AM
cialis for sale - daily cialis coupon

GuyiqzSaturday 28th of August 2021 12:49 PM
viagra online prescription canada - buy sildenafil without prescription

UjfkpoSunday 22nd of August 2021 02:52 PM
albuterol sulfate - ventolin medication ventolin medication

SygzfiSunday 22nd of August 2021 04:42 AM
ventolin medication - albuterol sulfate inhaler cheap albuterol

MjgfgrWednesday 18th of August 2021 05:09 PM
erectile dysfunction drugs - overcoming ed hims ed pills

OhyouwSunday 15th of August 2021 07:36 AM
cialis order online usa - Buy cialis online without prescription generic cialis buy online

QwjrjgFriday 13th of August 2021 05:37 PM
cost of viagra australia - sildenafil citrate australia how much is generic viagra

VxzjccTuesday 10th of August 2021 07:51 PM
best drug for ed - pills for ed ed pills otc

AnjywnMonday 09th of August 2021 08:12 AM
casino games win real money - hard rock casino online online casino games for real money

Write a Comment

Forex Featured Brokers


Free Trading Signals
50% Deposit Bonus
Broker Type : STP/ECN
Leverage up to 1:1000

Start Trading View Profile »

Free Trading Signals
Leverage - up to 1:200
Min: Deposit: $250
Broker Type: STP/ECN

Start Trading View Profile »

100% Free Bonus
Minimum Deposit $5
Leverage up to 1:1000

Start Trading View Profile »

15% Deposit Bonus
Minimum Deposit $100
Leverage up to 1:1000
Broker Type: ECN/STP

Start Trading View Profile »

$6000 Trading Bonus
88% Deposit Bonus
Leverage up to 1:1000
Minimum Deposit $25

Start Trading View Profile »

50% Deposit Bonus
Leverage up to 1:400
Minimum Deposit $100
Broker Type: NDD

Start Trading View Profile »