What is Spread in Trading?

Spread is a key concept in trading that affects your profitability. It is the difference between the bid and ask price of an asset, and it represents the transaction cost you pay to enter a trade. In this video, we break down what spread is, the types of spreads (fixed & variable), how brokers determine spreads, and how to minimize its impact on your trading strategy. Understanding spread is essential for optimizing trade execution and maximizing profits.

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