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what are spreads?

Forex spread refers to the difference between the buy price and the sell price.  There will be two quotes in forex, one is the buy price and the other is the sell price.  Both prices fluctuate in real time.  The difference between the two when a trader is trading is the spread.  The spread is a trader's transaction fee each time he places an order.  Spreads are divided into two, namely floating spreads and fixed spreads.

Floating spread: refers to the size of the spread changes according to market fluctuations.  For example, EURUSD.  When trading is active, it means that market liquidity is high, and spreads will narrow.  Conversely, when trading is inactive and market liquidity is low, the spread will widen. 

Fixed spread: means that regardless of whether the market is flat or volatile, the spread will not be affected.  For example, EURUSD has a fixed spread of 3 points, and USDJPY has a fixed spread of 4 points.  Some brokers treat fixed spreads, as spreads are an indicator of market liquidity.  This approach is just a way for brokers to understand this concept and facilitate marketing.  Some unscrupulous brokers secretly increase spreads, in the name of providing fixed spreads, defrauding customers, and ultimately increasing customer transaction costs.

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