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avatar what is spread on forex trading

what is spread on forex trading
@logmindrame1982
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When it comes to trading, understanding bid-ask spreads is essential. The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept. The narrower the spread, the more liquid the market is and the easier it is to trade. However, bid-ask spreads vary depending on the asset being traded and the market conditions. Trading is risky. The Forex market, like any other trade market, has a spread. Simply defined, a Forex spread is the disparity in price between the cost and selling price of a currency pair. It is commonly referred to as the “Ask price” and the “Bid price” in the Forex market. Either you have good trading conditions and low spreads and commissions, or poor conditions that can erode the profitability of your strategy, no matter how well you trade it!
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