What is a spread? every trader who trades in the forex market will be directly confronted with the spread. But in a more extensive use of spread and its effects on overall few traders mengulasnya. In this article we will review the role of the spread and the calculations were in forex trading, along with the correct definition of the spread.
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There are a lot of foreign terms for those of you new to forex often istilahh that makes you confused. So, for those of you who are new to forex, you need to read a lot and know the terms to govern the trading.
There are a lot of foreign terms for those of you new to forex often istilahh that makes you confused. So, for those of you who are new to forex, you need to read a lot and know the terms to govern the trading.
The forex world is inseparable from the buy and sell (buy and sell). Every trader has the freedom to do any action it thinks is correct to get the profit. Buy also called bid and sell with also called also with short/offer.
If we look at forex quote or price, usually followed by a bid and ask values. The spread is the difference between the selling price (bids) and the value of the buy (ask) or sell and buy quotes quotes. This spread is the earnings obtained by the broker where at the moment we sell, spread will be charged between two point to dozens of point depends on the pair is used.
Of spread varies in each pair. For the same pair also spread given may differ from one another with the broker forex broker. Forex brokers are using fixed spreads, i.e. the spread does not vary in any market conditions. And there is also a system that uses a floating spread, where if the spread varies depending on the market conditions.
Usually forex spread has been pegged by the respective broker and shall not be changed unless later, forex brokers find it necessary to raise the spread. Although this can be said to spread fixed or certain, but in the rules of each broker is usually added the sentence that "the increase in spreads may occur when there is a very strong fundamental issues affecting the market", where movement of the rate for a currency pair is very fast.
For experienced forex traders, such a moment is a moment eagerly awaited, because not every time can profit within a very short time. When the change occurred, for the spread traders who have done the open position at the beginning of this of course is not a problem because its influence is not too big, but being in the position of the loss then the swelling spread is painful.
And for a trader who recently entered the market, it will spread very pronounced swelling all, especially coupled with the existence of a very small margin, or arguably only able to withstand the movement of under 100 points.
Because of the many forex traders who also did the open position at the same time, sometimes delay in open position and certainly this is very disadvantageous for a trader. Because it could be borne by the already bloated spreads as well as the desired points are misses because of the delay. To that end, consider the spread on the pair that you used prior to mentransaksikan currency.
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