What is a Spread?
A spread is the difference between the buy (ask) and sell (bid) prices of a financial instrument. It is a key indicator of market liquidity and trading costs.
Types of Spreads at Pepperstone
Pepperstone offers various spread types, including raw spreads and standard spreads, catering to different trading preferences and strategies.
Factors Affecting Spread
Several factors influence the spread, such as market volatility, liquidity, and the underlying asset's price movements. Understanding these can help traders anticipate cost changes.
Managing Spreads
Traders can manage spread costs by selecting appropriate trading times, utilizing limit orders, and choosing the right account type that aligns with their trading style.
Trading on financial markets involves the risk of losing capital invested.