The Spread is nothing else than the difference between the buying and the selling of a currency or an index.

In other words, it is the difference between the price at which you can buy and the price at which you can sell.

In the Forex market these two quotations are always present and available, in addition, they are always set by the broker with whom we operate on the Forex. For example, if we use online platforms, the platform is the financial broker.

Usually the broker sets a gap between purchase price and sale prices which is, as a matter of fact, the spread. Depending on the currencies we operate on, the spread is of two, three, or even 10 points. This obviously depens on the importance of the currencies involved in the trade.

This difference is the gain of the broker in the completed transactions. Thanks to the spread, the brokers are able to offer access to the Forex market without applying any transaction.

A quotation is usually considered “normal” if the spread is of three points. Consequently, the lesser the spread, the easier the gain.