Spread in forex

[Sanusi]

Spread is the income of a broker, have being wondering how a broker generate his or her own income on spread, but from a tactical point of view how does a broker generate his own profit. So is it from the trader income. Moroever my question is how does a forex broker generate his spread

 

[Kayzzy3]

Spread is simply the difference between a broker's sell and buy rate, just see it in the light of an everyday business arithmetic, I can not buy more and sell less if I want to make profit.

So the broker sets the spread in such a way he will make profit, I bought this I'm selling to the trader thus so I can make profit.

 

[Alexandoy]

I am not really well-versed with forex trading but with the term spread what I understand is the difference in value when it comes to selling or buying. For example you buy the Japanese yen which is 150 in your currency. When you sell it at 160 then the spread is 10 of your currency. From that spread the broker earns a commission. Correct me if I am wrong in this understanding but I learned that from a friend who is into forex trading for a long time.

 

[Mawome]

Spread in forex is something I don't really get, please is all about making money money on it or is it just the beginning and learning process? Cos am actually interested forex trading and I have been trying my best to catch up with the latest trend in Forex, but it's not all that easy to learn I tell you

 

[Husnainali]

High spread means there is a big difference between bidding and asking. Emerging market currency pairs are generally more spread than large currency pairs. More than normal spread usually indicates one of two things, liquidity due to high volatility in the market or trading in a short time

 

[Nurudeen]

To the best of my knowledge on how a broker get their own money from online trading, any time a member of the broker buys a trade he or she will be charged for the trade and also charge for exiting the trade just like brokers do in stock trading

 

[Blue house]

Spread is the difference of each broker sells and buys rate, each broker will set the spread according to there taste and comfort, each broker has his or spread, the higher the spread the higher the profit of the broker, the lower the spread the higher the Profit of the trader.

 

[Eodine]

Spread can be simply put in arithmetic as the difference between the income generated by a stock broker or a forex trader. It is important to follow the trend in his spread to know if he's running in profit or loss.

 

[Suba]

The spread is a fee charged by the broker, which is the difference between the selling price (bid) and the buying value (ask). This spread is the income earned by the broker where when we sell, the spread will be charged between 2 points to tens of points depending on the pair used. Because when you make the transaction, the broker also has to pay the value of this spread to the international currency market.

 

[Samuel77]

It is possible for you to generate income form the trade income, and sometimes when the value of a currency increase you get more income. Forex trading also has high side of risk

 

[Victor001]

Spread in forex is very important, some broker gives bad spread that can not enable you scalp the market at ease, it's important to know the spread before going for any pair.

 

[Akinwale701]

Spread is the income of a broker, have being wondering how a broker generate his or her own income on spread, but from a tactical point of view how does a broker generate his own profit. So is it from the trader income. Moroever my question is how does a forex broker generate his spread

Spread is a very integral part of forex trading and one has to take the very easy approach in order to learn it very well and understand how it works very well

 

[Dowenship]

Spread is the income of a broker, have being wondering how a broker generate his or her own income on spread, but from a tactical point of view how does a broker generate his own profit. So is it from the trader income. Moroever my question is how does a forex broker generate his spread

Spread as been one of the told used by broker, so its been used most by brokers though but some traders also utilise it because they diversify there income.

 

[Richard92]

Forex trading is spreading these days people are investing in the business because of how lucrative it is and easy in terms of transaction and feedback.

 

[Heatman]

Spread is the income of a broker, have being wondering how a broker generate his or her own income on spread, but from a tactical point of view how does a broker generate his own profit. So is it from the trader income. Moroever my question is how does a forex broker generate his spread

There is always a commission for any broker used for forex trading. There are some brokers that charge more while there are some that charges lesser. It's all about using what works for you.

 

[GIFTMICHAEL]

Forex brokers makes their money through the vast majority of transactions that goes around their broker. People trade constant and little charges are taking, those small charges multiply by thousands of ongoing transactions via their broker sums up large profit margin for them.

 

[Kelly5]

It bothers me sometime that these brokers might not want you to make profits on purpose, because if they make money from the spread, why then will they be manipulating the market against their traders then?

 

[FreshKaz11]

Spread is the income of a broker, have being wondering how a broker generate his or her own income on spread, but from a tactical point of view how does a broker generate his own profit. So is it from the trader income. Moroever my question is how does a forex broker generate his spread

I think they generate their own income in as much as they have more investor on their platform investing with them either they win some profit or lose they will still gain some profit by investor investing with them.

 

[Kingstone]

I realized the difference in Spread when I began to trade Binary. The broker made some changes to the spread and for each trade I placed, I always began with a deficit depending on the lot size.

 

[Setho]

Spread when it comes to cryptocurrency and forex trading is just the difference in the amount of selling and buying from the crypto broker.