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Trading Academy Trading Basics - Lesson 2 /16

What is the "spread"?

When you make a trade, you’ll notice that you’re shown two different prices – the BUY price (the price you pay if you’re buying – sometimes referred to as the Offer) and the SELL price (the price you receive if you’re selling – sometimes referred to as the Bid).

This difference between these two prices is called ‘Spread’ and is an industry-wide standard term.

Spreads vary from instrument to instrument, typically depending on size and traded volumes – more popular instruments tend to have tighter Spreads whereas instruments less traded typically have wider Spreads.

Where can I see the Spread?

The Spread is shown on your trade ticket when you’re making a trade or on the watchlist in between the Sell and Buy buttons.

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