Spread is the difference between the buying price and the selling price. Its value varies depending on the selected currency pair.

What is the spread?

In the opening window of the trade order, you can see two prices. For example, if you open EUR/USD, you can see something like 1.11756/1.11762. Accordingly, the first figure is the price to buy, while the second figure is the price to sell. The difference between them is called the spread. In fact, it is this difference that indirectly serves as a commission for opening a trade on the platform.

Why do I need the spread?

Generally, the difference is due to the current trends in the economy and finance. For example, every person has dealt with currency exchange services at least once in his life. As you can know, there are always two prices: for purchase and for sale. That is, this is the value at which the bank is ready to exchange the currency. The difference between these figures is the commission or the profit of the bank. A similar situation we have in the Forex market.

The spread is paid when the position is opened. As soon as the investor opens the transaction, the amount of the commission is debited from the account, the size of which is determined by the company's policy, and the value of which is displayed on the trading platform.