SPREAD FOREX

    The spread is the difference between the selling price and buying the currency.

For example, the EUR/USD Bid written: 1.3200 Offer: 1.3203, spread

is the difference between 1.3200 and 1.3203, or 3 pips. So that the

BEP (break even point), the value of the currency should move of

spread. Suppose you open a position by buying EUR/

USD in prices Offer at 1.3203. Then when opening a position,

profit You-3 pips. Well, in order to break even, you have to sell on

1.3206,

     with this understanding, for trading is getting smaller

spread means the easier you print profits.

To choose a broker who offers a spread

competitive. The average broker offers a spread of 1-8 pips. Iika

You can get 1-2 pips spread, it has been very good.

     You also don't get screwed when there's an offer spread

small, sometimes tiny spreads because only applies specifically to

certain currency pairs, the other spreadnya fixed

height.

     Know also what the spread is fixed or mutable-

change. In a quiet market conditions or market

volatile because there are critical, economic news can spread

enlarged unaccountable. When the spread could fluctuate as

This, you have to be more careful. The effect you can quickly

Fortunately, big or huge loss quickly.

   The policy spread can also be changed in the holidays

long. At the end of the year, at a time when there is a holiday

long, some brokers will automatically raise the spread

and lower leverage. The possibility of this is done

to keep their cash flow, because it is usually at the end of

years many traders who attract their funds.

SLIPPAGE

     Slippage is easily could be interpreted as extra spread.

This effect is especially when you close the position in

ulomatis. Suppose you decide to close a position

NUR/USD price at 1.4500. Then not suspected market

very wild moves in the price range of 1.4500. As a result the position

You are not fitting in closed 1.4500 but less is more. For example

at 1.4505 or 1.4495. Means its price slipped (slippage) 5 pips.

Occasional slippage can be profitable. However, the slippage

too large can result in your position even the losers

or at least reduce the advantages.