Forex spread: the gap between buying and selling prices
Forex spread: the gap between buying and selling prices
Forex usually displays two prices for each currency pair.
Ask is generally the price at which the customer buys.
Bid is generally the price at which the customer sells.
The gap between these prices is called the spread.
The spread is part of the cost of trading.
Spreads differ from separate dealer commissions.
Immediately buying and selling can lose money even without price changes.
The spread does not remain constant at all times.
A small spread does not guarantee a profitable trade.
Explore this displayed gap only in a demo account.