spread in forex

The financial market is a complicated system where traders strive for profitable trading. To get what they want they should learn how to bypass obstacles on their way. You can do this only if you have reliable information. Today we will tell you who market makers are and what they do.

Any forex trader must understand the nuances of spread calculation. The gain of trade largely depends on the spread. It also affects the level of drawdown of open trades, which can lead to the closure of the order on Stop Out if the risks are calculated incorrectly. Diving deeper into what is the spread in forex, you can get the answer to a number of questions that will help to lead effective trading.

The foreign exchange market has many members, including forex brokers, retail investors, and governments. With the daily trade volume in the forex market exceeding $5 trillion, it is the most liquid one, creating many trading opportunities along the way. The currency pairs and their exchange rates, and the forex spread are all affected by this daily trading activity.