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Forex Trading Is tied spreads an important factor?
avatar Fxcarebear
Question by: Fxcarebear - 04 Nov 2015, 09:06:02
Is tied spreads an important factor?
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Answers (2)
avatar user 8080
Answer by: Pipmaster - 04 Nov 2015, 09:39:32

Tight spreads are very necessary if a trade wish to make long term profits on platform. The brokers that offer very tight spreads are ECN/STP and a few market makers.

avatar user 8084
Answer by: Matthew - 05 Nov 2015, 00:18:08

Every market has a spread and so does Forex. A spread is simply defined as the price difference between where a trader may purchase or sell an underlying asset. Traders that are familiar with equities will synonymously call this the Bid: Ask spread. Spreads can therefore be seen in the currency market could be seen as a broker's commission which they fetch from price quotes. Spreads are very important to the broker and the investor, exorbitant spreads can scrap all the dividends of a winning trade; spreads if not fixed can even endanger your positions on event of volatility.

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