There are two types of currency prices on the trading market - Bid and Ask. The price we pay to buy the pair is called Ask. The price at which we sell the pair is called Bid.
Spread is the difference between these two prices. In other words, it is a commission you pay to your broker for every transaction.
SPREAD = ASK – BID
The floating type of spreads is used in FBS Trader:
- Floating spread – the difference between ASK and BID prices fluctuates in correlation with the market conditions.
Floating spreads usually increase during important economic news and the bank holidays when the amount of liquidity in the market declines. When the Market is calm, they can be lower than the fixed ones.