What is a FOREX Spread?

A SPREAD in Forex Trading is the difference between the bid and the ask price. Otherwise knows as the variance between the buying and selling prices. Normally, the proceeds go to the broker/specialist that handles the transaction.

So what is a bid and ask price?

Selling price is the BID price and buying price is the ASK price.

Let's look at below image:

We have here an example of AUDUSD, below the currency name you will see that the spread is 16. Such is the difference between 0.74017, the selling price and 0.74033, the buying price.

Note that the closer the spread to zero means the better it will be to trade because reaching break-even point is not going to be very difficult to achieve.

Find out more on how to understand FOREX market, visit us at www.forexcebu.com