What is a Good Spread in Forex?
A spread is one of the most important aspects that can alter your profitability when trading within the market. But what is a good spread in forex? In simple words, spread is the difference that exists, usually in pips, between the selling and the buying prices, and in pips for a currency pair. It stands for the amount that will be taken out from the wallet of a trader at the entrance point of the market before the opening of a transaction. Understanding what is spread in forex trading is essential for both beginners and experienced traders, as it directly affects trading costs and potential profits. This article explores what makes a good spread in forex and how traders can minimize costs to maximize their returns. What Is Spread in Forex Trading? A global foreign exchange market exists without any organized exchange, and the brokers quote their bid and ask prices. A spread is the difference between one and usually represents part of the broker's price charged for executing...