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Low spread is essential


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18 hours ago, bearhugs said:

A low spread means there is a small difference between the bid and the asking price. It is better to trade when spreads are low like during the major forex sessions. A low spread usually indicates that volatility is low and liquidity is high.

It is very important for the traders to understand that if the spreads are lower they can get income easily.

See the Lower Spreads of FXOpen below

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There are several factors that influence the size of the bid-offer spread. The most important is currency liquidity. Popular currency pairs are traded with lowest spreads while rare pairs raise dozen pips spread. Next factor is amount of a deal. Middle size spot deals are executed on quotations with standard tight spreads; extreme deals – both too small and too big – are quoted with broader spreads due to risks involved.

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