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 1.3603
or sell it for 1.3597. 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.
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