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What is a spread in Forex?




When a price for a market is quoted, there are two prices.

The first price, known as the bid, is the sell price and the second price is the buy price, known as the offer.

The difference between the sell and buy price is called the spread.

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 synchronously call this the Bid: Ask spread.

What is a spread in Forex

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