What is the Spread and how it affects a trade?

The spread is the difference between the ‘Buy’ Price (ASK price) and the ‘Sell’ Price (BID price).

How the Spread Affects a Trade:

When a trader opens a trade at a specific price, they will immediately be in a losing position, however that is normal due to the spread.

Buy Price (ASK Price): The price at which you buy.

Sell Price (BID Price): The price at which you sell.

Real Money Exchange Example:

If you exchange 1,000 EUR to USD, you must pay the spread.
If you then exchange the USD back to EUR a moment later, you will receive less than 1,000 EUR due to the spread.

With TradingMoon, you can enjoy very competitive spreads. For more information, choose any symbol on our platform and view the details.