Spread is depended on which factors?

<p>The most evident factor for the spread is a security's liquidity. Another important aspect that affects the bid-ask spread is volatility.</p>

<p>Major economic indicators, FX economic calendar, major forex market sessions,</p>

<p id="isPasted">A number of factors can influence the size of the spread, including the currency pair you are trading, the volatility of the pair, the size of the trade, and the provider you use.</p><p>The following are some of the major forex pairs:</p><ul style="margin-bottom:0cm;margin-top:0cm;" type="disc"><li style="margin-top:0cm;margin-right:0cm;margin-bottom:18.0pt;margin-left:0cm;line-height:21.0pt;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;vertical-align:baseline;">EUR/USD: Euro and US dollar</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:18.0pt;margin-left:0cm;line-height:21.0pt;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;vertical-align:baseline;">USD/JPY: US dollar and Japanese yen</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:18.0pt;margin-left:0cm;line-height:21.0pt;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;vertical-align:baseline;">GBP/USD: British pound and US dollar</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:18.0pt;margin-left:0cm;line-height:21.0pt;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;vertical-align:baseline;">USD/CHF: US dollar and Swiss franc</li></ul>

<p>When trading forex, it is important to consider forex spreads. Spreads are used by forex brokers to recover transaction costs. A spread is the difference between the bid and ask price of the base currency. The bid price is the price at which we sell, and the ask price is the price at which we buy. The brokers sell the currency at a slightly higher price than what they paid for it and buy from you at a slightly lower price. Spreads should be considered when choosing a broker and when planning your strategy. When you don't consider the market spreads, a profitable strategy can fail badly.</p>

<p id="isPasted">In general, the spread is the difference in prices of the two financial instrument baskets similar in their characteristics.</p><p>The price of each basket is calculated by the prices of its constituent instruments with regard to their weight. The point of spread trading is profiting from the narrowing or widening of spreads between instrument baskets.</p><p>Buying a spread means buying all the tools of the first basket with the simultaneous sale of all the instruments of the second basket.</p><p>Selling a spread is the sale of all the instruments of the first basket with the simultaneous purchase of all the instruments of the second basket.</p><p>Among the advantages of spread trading - are low risks, a simple trading strategy, and a great potential for finding profitable strategies.</p>