Fixed Spread<\/p>\n<\/li>\n
Floating Spread<\/p>\n<\/li>\n<\/ul>\n
It\u2019s worth noting that fixed spreads are no longer widely offered by most brokers. Due to the greater advantages of floating spreads, most traders now prefer them. However, we will review both types in detail below.<\/p>\n
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Fixed Spread<\/h3>\n
As the name suggests, a fixed spread remains constant and is determined by the broker. It does not fluctuate with market volatility. This type of spread is typically offered in Standard or Micro accounts and is ideal for beginner traders or those who prefer precise cost calculations.<\/p>\n
Advantages of Fixed Spreads:<\/strong><\/p>\n Predictable Costs:<\/strong> Traders can plan their strategies confidently, knowing their transaction costs in advance.<\/p>\n<\/li>\n Beginner-Friendly:<\/strong> Due to its simplicity and stability, it\u2019s suitable for novice traders.<\/p>\n<\/li>\n Protection Against Volatility:<\/strong> During high-impact news events or market fluctuations, fixed spreads prevent sudden cost increases.<\/p>\n<\/li>\n<\/ul>\n Disadvantages of Fixed Spreads:<\/strong><\/p>\n Higher Costs:<\/strong> Fixed spreads are usually wider than floating spreads under normal conditions.<\/p>\n<\/li>\n Limited Scalping Efficiency:<\/strong> They may not be cost-effective for short-term traders or scalpers.<\/p>\n<\/li>\n Broker Dependency:<\/strong> Some brokers compensate for fixed spreads by charging additional commissions or fees.<\/p>\n<\/li>\n<\/ul>\n A floating spread \u2014 often found in ECN accounts \u2014 means that the difference between the bid and ask price fluctuates based on market conditions. When market liquidity and trading volume are high, the spread is minimal; however, during high volatility or reduced liquidity, spreads may widen.<\/p>\n Advantages of Floating Spreads:<\/strong><\/p>\n Greater flexibility and the potential to benefit from lower spreads during normal market conditions.<\/p>\n<\/li>\n<\/ul>\n Disadvantages:<\/strong><\/p>\n Unpredictable trading costs, especially during high-volatility periods, when spreads can widen significantly. Traders should always be prepared for sudden changes and employ effective risk management strategies.<\/p>\n<\/li>\n<\/ul>\n Since all Trendo Broker<\/a><\/strong> trading accounts are of the ECN type, the spreads offered are floating. The spreads provided by Trendo are among the lowest in the market. For example, the spread on major currency pairs at Trendo starts from 0 pip, while the spread on gold (XAUUSD) is at its minimum level \u2014 less than 1 pip. To view the spreads of other trading instruments, you can visit the Trendo trading platform<\/a><\/strong>. In addition to zero spreads, Trendo offers the lowest commissions and swap<\/a> <\/strong>rates in the market.<\/p>\n Key advantages of trading with Trendo include:<\/p>\n Zero spread on major currency pairs<\/p>\n<\/li>\n Less than 1 pip spread on Gold (XAUUSD)<\/p>\n<\/li>\n A dedicated, professional trading platform<\/p>\n<\/li>\n Free welcome bonus<\/p>\n<\/li>\n Cashback program<\/p>\n<\/li>\n Crypto deposit bonuses<\/p>\n<\/li>\n Support for multiple deposit and withdrawal methods<\/p>\n<\/li>\n Access to a dedicated economic calendar<\/p>\n<\/li>\n<\/ul>\n Calculating the spread in Forex is straightforward. The spread is the difference between the ask (buy) price and the bid (sell) price of a financial instrument, measured in pips.<\/p>\n Formula:<\/p>\n (This formula applies to all types of spreads, regardless of whether they\u2019re fixed or floating.)<\/p>\n Example:<\/strong> There\u2019s no need to calculate spreads manually \u2014 on the Trendo platform<\/strong><\/a>, spreads are calculated automatically and displayed in real time.<\/p>\n In Forex, major pairs are currency pairs that include the U.S. dollar and represent the highest trading volumes in the market. These include:<\/p>\n EUR\/USD<\/p>\n<\/li>\n USD\/JPY<\/p>\n<\/li>\n GBP\/USD<\/p>\n<\/li>\n AUD\/USD<\/p>\n<\/li>\n USD\/CAD<\/p>\n<\/li>\n USD\/CHF<\/p>\n<\/li>\n NZD\/USD<\/p>\n<\/li>\n<\/ul>\n\n
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Floating Spread<\/h3>\n
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Spreads at Trendo Broker<\/h2>\n
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How Is Spread Calculated in Forex?<\/h2>\n
If the EUR\/USD ask price is 1.1236 and the bid price is 1.1234, the spread equals 2 pips. In this case, trading 1 standard lot would cost $20, since each pip equals $10 per lot.<\/p>\n<\/h3>\n
Spreads for Major Currency Pairs<\/h2>\n
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