Spread - the difference between purchase price and sale price of the currency pairs on Forex. When you request quotes of any currency pair, your broker will give you Forex 2 different prices.
For example:
EUR / USD: 1.5586 (sell) and 1.5589 (purchase).
What does this example? But what if you're going to sell a certain amount of the currency pair EUR / USD (as it implies that the dollar will rise in price) - then you can sell it at a price of 1.5586 (the price that put the broker to sell the currency pair) . If you are going to buy the currency pair EUR / USD (as it implies that the euro will rise against the dollar) - then you can buy it at a price of 1.5589.
The difference between the bid and ask price, put up a broker and will be spread - in this case it is 3 points. Spread - a natural profit broker, it receives, regardless of how you trade, successfully or loss.
This figure illustrates the above. Green line shows the quote currency pair GBP / USD in if you are going to buy (Buy), and red - shows the sales price (Sell). The difference between these prices and will spread, as defined in paragraphs.
For example:
EUR / USD: 1.5586 (sell) and 1.5589 (purchase).
What does this example? But what if you're going to sell a certain amount of the currency pair EUR / USD (as it implies that the dollar will rise in price) - then you can sell it at a price of 1.5586 (the price that put the broker to sell the currency pair) . If you are going to buy the currency pair EUR / USD (as it implies that the euro will rise against the dollar) - then you can buy it at a price of 1.5589.
The difference between the bid and ask price, put up a broker and will be spread - in this case it is 3 points. Spread - a natural profit broker, it receives, regardless of how you trade, successfully or loss.
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