Question
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spread vs profit?
1 Answer
<p>A broker charges spread as a commission for allowing you to trade in the forex market. For example, if you are trading EUR/USD and the spread is 30 basis points. So when you trade with 1 lot your position will start with a loss of -30$ which first you have to cover after which the position will turn profitable. This way the spread of a broker work. But it is essential to have your positions correct. The broker charges a minimal commission but it is essential for a trader to understand the market using technical and fundamental tools.</p>
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