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what is spread | how spread is calculated | spread calculation - 5Stars Forex

页数: 1
Dec 31, 2015 07:46 am

帖子: 11
入会日期: 07/12/2015

Currencies are always quoted in pairs (e.g. USD/CAD). The first currency is called the base currency and the second currency is called the counter or quote currency (base/quote). For example, if it took C$1.20 to buy US$1, the expression USD/CAD would equal 1.2/1 or 1.2. The USD would be the base currency and the CAD would be the quote or counter currency. Now that we know how currencies are quoted in the marketplace, let's look at how we can calculate their spread. Forex quotes are always provided with bid and ask prices, similar to what you see in the equity markets. The bid represents the price at which the Forex market maker is willing to buy the base currency (USD in our example) in exchange for the counter currency (CAD). Conversely, the ask price is the price at which the Forex market maker is willing to sell the base currency in exchange for the counter currency. Forex prices are always quoted using five numbers; so, for this example, let's say we had a USD/CAD bid price of 120.00 and an ask of 120.05. Thus, the spread would be equal to 0.05, or $0.0005.

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Jul 18, 2017 08:06 pm

帖子: 62
入会日期: 17/11/2015

Spread is sort of thing that’s not that much required to talk about, but when we talk about newbies then it is obvious that spread might be important. I have finest broker in OctaFX who is regulated by FCA and also have outstanding feature and facility including LOWEST possible spread at 0.1 pips for all major pairs, zero balance protection, swap free account and lot more that really enhances our chance and makes it all work well and that’s in any situation.

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