Community Forex Questions
What is floating spreads?
There are also advantages and disadvantages to floating spreads. With high market liquidity, you get almost zero spreads of 0.2-0.5 pips.
However, you must take advantage of this opportunity. With low liquidity, excessive rises in this indicator can make any transaction meaningless and sometimes the floating spread can reach 20-30 points. With floating spreads, the size depends on the liquidity of the instrument itself, so only the largest forex brokers can offer them.
Lowest spreads are available. A commission per lot (volume) - With this option, you pay a fee based on the volume. $1,000,000 is $50 no matter which currency you trade. This commission is added to the variable spread, so the total fee is the same as for other types of commissions.
Brokers can use these commissions to specify zero spreads in their trading conditions, attracting clients' attention.
It is only through the use of special spread indicators that we can check if the trading conditions stated in the specification are being followed.
However, you must take advantage of this opportunity. With low liquidity, excessive rises in this indicator can make any transaction meaningless and sometimes the floating spread can reach 20-30 points. With floating spreads, the size depends on the liquidity of the instrument itself, so only the largest forex brokers can offer them.
Lowest spreads are available. A commission per lot (volume) - With this option, you pay a fee based on the volume. $1,000,000 is $50 no matter which currency you trade. This commission is added to the variable spread, so the total fee is the same as for other types of commissions.
Brokers can use these commissions to specify zero spreads in their trading conditions, attracting clients' attention.
It is only through the use of special spread indicators that we can check if the trading conditions stated in the specification are being followed.
Mar 04, 2022 12:26