What Is the Spread?

The spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) quoted in a decimal value called [pips] (or basis points).

Most currency pairs are quoted to the fourth decimal place. For example, if the EUR/USD rate is 1.2105/7, the spread, or difference, between the bid and ask price is 2 points or pips (1.2107 - 1.2105 = 0.0002).

Some trading platforms add an extra digit of [precision] quoting rates to the fifth decimal place (known as fractional pips or "pipettes"). For example, the EUR/USD rate could also be quoted as 1.21501/19, where the spread is equal to 1.8 pips (or 18 pipettes). This extra decimal can significantly reduce the difference between the buy and sell price of a currency pair, offering clients reduced overall trading costs and a greater ability to execute complex, and often automated, trading strategies.

In general, during non-standard trading hours such as weekends, spreads are widened to reflect illiquidity in the market. Likewise, during periods of high volatility, such as news events, spreads may be widened temporarily to respond to liquidity issues in the market.

Ultimately, forex prices today are dictated by the [forex] interbank market, where spreads are variable depending on current liquidity and ticket size.

Forex Brokers:

Most forex traders use a broker to handle their transactions. What exactly is a broker? Strictly speaking, forex broker competition is an individual or a company that buys and sells orders according the investor's decisions. Forex Brokers competition earns money by charging a commission or a fee for their services.

A FOREX broker competition needs to be associated with a large financial institution such as a bank in order to provide the funds necessary for margin trading. In the United States forex broker competitive should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.

Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of forex broker's competition who offers their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

Customer satisfaction and safety are just part of the story. You want to find forex broker competition who executes orders quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets.

ForexGen Academy | Forex Market

Why ForexGen? Profits are made by utilizing margin trading, where a relatively small amount of money is required in order to control much larger positions in the market. Please remember that trading currencies is risk and you may lose all or some of your investment.

ForexGen Enterprise Accounts Also, this high degree of leverage without proper risk management can lead to large losses as well as gains.Brokers normally requires a 1% margin deposit.

Download ForexGen Platform Hereby $1000 controls $100,000 of the trade currency.
Currencies ForexGen Promotion are traded in lots, 1 lot is equal to $1000 witch controls $100,000 in currency.

A margin call occur when your trading account drops below this min. $1000 per traded lot, your broker will close your position automatically.

ForexGen Customer Indicators Currencies are traded on a price interest point system (pip). Each currency pair has its own pip value. A trader's goal is to capture as many profitable pips as possible. Some pip values are fixed while others can fluctuate slightly as one currency gains or losses strength against the other.