How to control the spread?

<p id="isPasted">To minimize the impact of spreads on your forex trading, focus on trading during peak market hours when liquidity is high, choose major currency pairs with tighter spreads, and utilize limit and stop-loss orders. Understanding how spreads work and how they are affected by market conditions is also crucial.&nbsp;</p>

<p id="isPasted">To control spread in trading, traders should choose a broker with competitive spreads and trade during high-liquidity periods when spreads are naturally lower. Additionally, using risk management tools like stop-losses and choosing high-liquidity assets can help minimize the impact of wider spreads.&nbsp;</p><p><strong>Operational and strategic actions</strong></p><ul><li>Choose a reputable broker: Select a broker known for offering competitive and stable spreads. Compare different brokers to find one with lower costs for the assets you trade most frequently.</li><li>Trade during high-liquidity hours: Spreads tend to be tighter during periods of high trading volume, such as when major market sessions overlap (e.g., the London and New York sessions).</li><li>Trade liquid assets: Focus on highly traded instruments like major currency pairs, blue-chip stocks, and major stock indices. These have more market makers competing for business, which leads to tighter spreads.</li><li>Use limit orders: Place limit orders instead of market orders to control the price at which you are willing to buy or sell. This helps you avoid paying a wider-than-expected spread, as described in this YouTube video.</li><li>Use stop-losses: Always use stop-loss orders to limit potential losses. For assets with wide spreads, a realistic stop-loss may need to be a larger distance, so it's essential to factor this into your risk-reward calculation.</li><li>Use a demo account: Practice with a demo account to get familiar with how spreads behave in different market conditions before risking real capital. </li></ul>