What surprised you about spreads on exotic pairs?
EUR/USD might spread 1 pip; USD/ZAR can spread 100 or more. The spread on an exotic can eat a small stop-loss entirely, which beginners discover only after the trade opens.
If you've traded exotics:
- the pair and the spread you saw
- how the spread changed during your session
- how it affected your position sizing
The trading costs guide shows how spread eats into every trade.
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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