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What is spread in forex?

Firstly if a Forex trader executes a forex deal that a broker or market maker has quoted on.
It usually means that a few pips will be paid away by the trader.
So to be able to take on or close the forex position they want is called the spread.

In short In quotations made by forex market makers the trading spread observed is simply defined as the difference between the bid and ask price of a currency pair.
So the bid price is the exchange rate at which the currency pair will be purchased by the market maker.
While the ask price is the exchange rate at which the currency pair will be selling.

So let suppose the EUR / USD currency pair as an example.
Can you remember that the bid exchange rate that the trader will sell is 1.05716?
While the exchange rate of the purchase is 1.05733 for the offer or order.
The trade spread is the difference between the bid or asking price.
So that would be either 0.00017 or 1.7 pips in this case.

What is spread in forex?

Which Brokers Offer the Best Forex Spreads?

ICMARKET which is regulated and the most trusted broker.
They provide very tight raw fix spread accounts on almost every pair with fast execution.

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If you are a beginner trader and to become a good professional forex trader.
Therefore the Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which is already traded and tested by thousands of TFS members and performs daily trades.

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Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market


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About Author
Kevin The Forex Scalper

Welcome to my author blog. With over 12 years of experience in the financial markets, Trading is more than a profession for me; it's a passion that has fueled my curiosity and determination. Over the years, I've explored various trading strategies, dabbled in different asset classes, and navigated through the ever-evolving landscape of technology and innovation. Through it all, I've witnessed firsthand the transformation of the financial industry. My mission is to share the wealth of knowledge I've gained over the years with you, my fellow traders and aspiring investors. Whether you're a seasoned pro looking for fresh perspectives or a newcomer eager to understand the basics, you'll find something valuable here.

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