Spreads

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Lowest spreads in the industry

Teacher's FX offers attractive spreads on all accounts. There are two types of accounts: those with spreads and no commissions, and those with spreads and commissions. Those with a spread can also be either variable or fixed. Fixed spread accounts allow traders to focus more on their strategies, as there are no sudden spikes, even during volatile market times, and you can trade with a stable spread. Download the MT5 platform and enjoy trading.

What is spreads?

Spread has several meanings, but they all refer to the difference between the bid and ask price of an instrument. While the market price lies between the two, the bid price is always higher than the ask price.

■ During a trade, you either buy or sell the particular commodity you are trading on the assumption that the specific market price will rise or fall.

■ If the trade is executed and the price movement exceeds the cost of the spread, the trade is successful.

■ Similarly, if the price is within or outside of the spread, the trade is not successful. In CFD trading, the spread is one of the most important costs.

■ The lower the spread, the better for the trader. At the same time, remember that there are risks to consider.

■ For example, some markets charge commissions, while others offer a combination of spreads and commissions. The spread is the last large number in the price rate.

Spreads with different meanings

Bid/offer price

We provide a safe trading environment. With a proven track record, MT5 is the trading platform of choice for both novice and experienced traders. The MT5 platform, which has established itself as the industry standard, is packed with the best features for Forex trading.

Trading Positions

Spread sometimes refers to the difference between a short position in one futures contract or currency pair and a long position in another futures contract or currency pair. This is known as spread trading.

Underwriting

The spread is the difference between the amount paid to the brokerage firm and the price paid by the investor for a particular security, meaning the cost paid to purchase the security.

Lending

Spread refers to the value a borrower pays for a benchmark bond in order to borrow funds. For example, if the prime interest rate is 3% and the borrower takes out a 5% home loan, the spread is 2%.

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