5 Factors That Influence Spreads When Forex Trading

When trading forex, you will need to pay your forex broker the spread which is the difference between the bid and ask prices of a currency pair. There are many variable factors that can impact the size of the spread including the brokers liquidity, trading volumes, economic data and market sentiment. If there is an imbalance between the buyers and sellers of a currency pair, the spread can widen to reflect this market condition. Generally speaking, the tighter the spread, the less it will cost you to make a trade. Some forex trading strategies like scalping are especially dependent on …READ MORE

What Are Forex Spreads And Why Are They Important?

forex-spreads-explained

In this post I will be explaining what forex spreads are and why they are an important factor to consider before trading the forex market. Forex spreads can be the difference between a profitable and non-profitable forex trading strategy, especially when using a forex scalping system. Before placing a trade, you should consider the current spread and how it can impact your trading costs and therefore the potential profits your next trade may or may not achieve. What are Forex Spreads? In a nutshell, forex spreads are the difference between the bid and ask price. This is a trading cost …READ MORE