Question: What is a forex spread?
The spread is the amount of pips
between the bidding price and the asking price is called the spread. The spread is what forex brokers
use to make money on every forex
trade placed through their network.
For example, the forex broker may be paying a price of 1.3600 for buying or selling. The broker will then allow you to buy the currency for 1.3601 or sell it for 1.3599. The spread always stays around the actual price that the forex broker is paying. So when you buy, you get one end of the spread and when you sell you get the other end of it, and vice versa. By the time you close your trade, you will have always paid the spread.