What is a spread?

 

When you trade Forex CFDs, you do not pay commission; you pay a spread. The spread is measured in pips and is the difference between the bid price and ask price. The bid price is the price at which a party is willing to buy while the ask price is the price at which a party is willing to sell.

buy sell spread

Rate three pips

In this example, the spread is 3 pips.

Spreads will generally differ according to currency pairs, but as a client of ForexCT, you will always have fixed spreads. This means that even if the market is volatile because of a major news release or other indicators, we will not widen your spreads.

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