What is the spread | Forex Training Courses | Plan B Trading
“What is the spread” is one of the questions answered at “What is the spread” looks at the concept of spreads when trading Forex. Spreads are measured in pips, so pips are explained. Bid, offer and mid prices are also explained. “What is the spread” uses real currency pairs to explain how spreads are calculated from bid and offer prices. In each example, the arithmetic is shown. Different currency pairs quoted to four and five decimal places are used as examples for clarity. The Japanese Yen is quoted to both two and three decimal places and is also shown as an example. The concept of variable spreads is introduced and competition among brokers is mentioned. A worked example shows the cost of the spread on a Eurodollar trade. You’ll learn how to use spreads when placing pending orders on the Trading 101 course.
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