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What is a spread in forex trading? - Printable Version

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What is a spread in forex trading? - rasnajacob - 09-26-2017

The difference between ASK and BID is called spread. It represents brokerage service costs and replaces transactions fees. Spread is traditionally denoted in pipsĀ  a percentage in point, meaning fourth decimal place in currency quotation. Following types of spreads are used in Forex Trading.In finance, a spread trade is the simultaneous purchase of one security and sale of a related security, called legs, as a unit. Spread trades are usually executed with options or futures contracts as the legs, but other securities are sometimes used.
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