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Ryan

What does a Forex Spread entail?

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Hello Ryan,
Financial markets, such as Forex, usually have a spread. A spread is typically the difference in price where the dealer may buy or sell a fundamental asset.
A spread is precisely the asking price of a currency pair minus its offer price.
A foreign exchange spread may stretch all through the trading day, varying between a high spread and a low spread. Volatility is one factor that may make a spread to run.
The more popular currency pairs usually have a lesser spread compared to the emerging ones. These favorite currency pairs usually trade a lot compared to the less popular ones, therefore, leading to lower spreads.
A high spread shows that there is a considerable distinction between the asking price and the offer price.  A low spread means that the difference between the selling and the offer price is small. 
Volatility is low when the forex spread is low.

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