Spreads in forex are one of the basic concepts in it. It is the difference between a currency pair's bid price (buying price) and the asking price (selling price).
In transactions, the spread is a fee that must be paid by traders every time they open a trading position. When buying a forex pair, traders will buy at the asking price, preferably when selling traders will sell at the bid price, the gap is called the spread.
Spreads in forex, Let’s Learn it Together
The gap is usually measured in units of pips which is the smallest unit of price change in a transaction, each forex has a different spread depending on the market. Such as market conditions, volatility, brokers, and many more.
The smaller the percentage, the less efficient the transaction costs will be and the greater the profit potential. Conversely, the bigger the percentage. The efficiency of transaction costs will be greater and make the potential profit smaller to get.
Therefore, traders should pay attention to the size of the percentage when choosing a broker and making transactions are very important, so be sure to always pay attention to it.
Here are Some Tricks on Spreads
Continuing how to make it more potent in buying and selling transactions, please refer to some tricks that can help.
1. Choose a broker with competitive spreads such as Didimax Forex broker
Check and compare it with several brokers before choosing a broker. Choose a broker with low and competitive spreads in forex, such as Didimax.
2. Trade at the right hours
In addition to broker selection, paying attention to the spread in terms of hours is good. The right hour or moment will make everything smooth, and avoid overlapping trading sessions.
3. Choose liquid currency pairs
Liquid currency pairs tend to have a lower spread because many buyers and sellers are willing to make transactions, so make sure of that.
4. Check market volatility
Followed by checking the volatility of the market, so as not to make the wrong choice. When the market is volatile it is advisable to avoid it, on the other hand when it is stable it is a good option to choose.
5. Use the right technology
Some of the best forex brokers provide trading platforms that can minimize spread by using the right technology. For example, the spread can be minimized by using ECN (Electronic Communication Network) technology.
6. Trade with the right lot size
Too large a lot can increase the spreads in forex, so be sure to choose the right lot size for your chosen trade, preferably the smallest.
7. Use the right trading strategy
Finally, some trading strategies can minimize spreads, such as scalping or short-term trading, but choose a strategy that suits your trading style first. These are all ways to make spreads in forex a smaller percentage so that large profits will be obtained because trading costs are getting smaller.
Didimax The Best Choice
If you want the best results in buying and selling transactions by reducing spreads in forex, you should choose Didimax to be a mainstay. It is a broker that has long existed in the world since 2 decades ago, it will provide great profit potential in the buying and selling process.
Coupled with the existence of low and stable spreads, it is suitable for traders who want to get a big profit in every position opened. Conveniently, traders can be helped by the lower fees offered by it.
This will maximize profits, along with access to
global markets as well. The MetaTrader 5 platform has the potential to make transactions in forex more leverage because the access process will be more user-friendly for anyone.
With Didimax as a broker choice, traders can get low and stable spreads and quality trading features to help achieve their trading goals. So, join Didimax and start buying and selling with low and stable spreads in forex that suit your needs.