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

#Brexit Mania!

Today, hot as pancake, in the news UK speak up! UK voted to leave European Union in landmark referendum.

The news is followed by UK Prime Minister David Cameron to step down his post.

So what's the effect of this scenario to the big 5 currencies? Let's take a look one by one.

USDCHF 

Hi: 0.9800

Lo: 0.9531

Variance: 269 pips

AUDUSD

Hi: 0.7644

Lo: 0.7300

Variance: 344 pips

USDJPY 

Hi: 106.79

Lo: 98.92

Variance: 787 pips

EURUSD 

Hi: 1.1425

Lo: 1.0909

Variance: 516 pips

GBPUSD 

Hi: 1.5015

Lo: 1.3223

Variance: 1,792 pips

Today we had extreme movements of the market. Since 1985, UK touched an ultime low. It seems to be finding a good bouncing point towards a potential ultime high. My bet is next year the soonest.

Happy trading everyone!