How do you price in the spread before entry?
Beginners plan entries and stops on the mid-price and forget that they buy at the ask and stop out at the bid. The spread is a cost on entry and exit, and on some pairs it's a big one.
How do you account for it?
- whether you plan on the chart price or the executable price
- how spread changes your stop distance maths
- the pair where spread matters most for you
The trading costs guide shows the full entry-and-exit bill.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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