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What is Spread in Forex


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Spread is one of the considerations for traders when choosing a broker. ECN brokers typically offer tight spreads starting from zero, therefore, I trade at FXOpen ECN because the low spreads are quite profitable for scalping strategies for short-term trading.

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All the facilities that have been provided by the broker should indeed be utilized as well as possible. Because of the facilities from the broker, traders can later learn more deeply and be ready to trade on a real account with the Tickmill broker.

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In forex, the spread is the difference between the bid (buy) and ask (sell) price of a currency pair. It represents the broker’s fee and impacts trading costs. Spreads can be fixed or variable, influenced by market conditions. Lower spreads reduce costs, so choosing a low-spread broker and trading during high liquidity helps.

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Planning and preparation are very important in this forex trading business. So before running a trade a trader must have a mature plan and plan. And don't forget money management, so that trading activities can run smoothly and focus on achieving consistent profits with the Tickmill broker.

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In forex trading, there are two types of spreads known to traders. The first is fixed spread, meaning the spread value is fixed but usually higher; whatever the market conditions, the spread value remains the same. The second is variable spread or floating spread, meaning the spread value depends on market conditions; when liquidity is low, the spread tends to be higher, but in a normal market, the spread value tends to be tight. This is used by ECN brokers and STP brokers. Usually, when trading with these brokers, all orders will be forwarded immediately to the interbank market, suitable for scalping because there is no requote, but there is a possibility of slippage. 
I trade at FXOpen and also like to trade scalping and day trading. With the support of execution speed and tight spreads, it is quite enjoyable because the trading execution is smooth.

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To be successful in this forex business is not an instant thing, we have to make an effort where the learning process is carried out so that we understand how to trade profitably with the Tickmill broker.

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  • 2 weeks later...
On 3/20/2025 at 5:32 AM, tradesprint said:

Agree that success is not an overnight thing we need to practice with patience before the results come speak themselves.

Forex trading requires patience and discipline. If a trader has found his trading rhythm, he will be able to easily maintain good trading habits by avoiding mistakes that cause higher risks.

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The main skill above all is how to manage our funds and the risks associated with them. Those who become profitable traders have patience since the trading job is bit boring where we have to wait for the right setup to form in order to take trade and make money out of it. The trading is not pushing buttons all the times.

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