Are the spreads fixed of variable?

<p id="isPasted">In forex trading, spreads are of two types: variable or fixed.</p><p>A variable or floating spread is a constantly changing value between the ask and bid prices. In other words, the spread you pay for purchasing a currency pair fluctuates because of things like supply, demand and total trading activity.</p><p>Brokers promising tight spreads typically offer variable spreads. Although it’s certainly possible that the actual spread you pay for matches the one advertised by the broker, this is not always the case. In general, spreads are usually tighter during active trading sessions where liquidity is optimal. A prime example of this is the London-New York overlap.</p><p>After all, variable spreads are characterized as a “completely market phenomenon.”</p>

<p id="isPasted">Spreads can be either fixed or variable. Fixed spreads remain constant, offering predictability, while variable spreads fluctuate based on market conditions like liquidity, volatility, and trading sessions. Some brokers offer fixed spreads, while others provide variable spreads based on market conditions.&nbsp;</p><p><strong>Fixed spreads</strong></p><ul><li>What they are: Spreads that stay the same regardless of market conditions.</li><li>Pros: They provide consistency and predictability, which can help with cost management and is often favored by beginners.</li><li>Cons: They can be more expensive overall, as brokers charge a premium to guarantee the fixed rate, and they don't reflect real-time market changes. </li></ul><p><strong>Variable spreads</strong></p><ul><li>What they are: Spreads that change as the bid and ask prices change, influenced by market dynamics.</li><li>Pros: They can offer lower costs during calm markets because they tighten in line with liquidity.</li><li>Cons: They can widen significantly during periods of low liquidity or high volatility, leading to higher trading costs. </li></ul>