Help CenterWhat is the Spread
The spread represents the difference between the current bid and ask prices of a trading instrument. It is typically measured in pips, which indicate changes in the instrument's price.
Example:
EURUSD
- Ask Price: 1.08010
- Bid Price: 1.08000
- Spread: 0.00010 or 1 Pip
At Liquid Brokers, our spread is dynamic, also known as a floating spread, is constantly changing based on market conditions.
Factors Affecting Spread
Several key factors influence the spread of a trading instrument, including:
- Market Volatility: Increased volatility often leads to wider spreads.
- News Releases: Major news events can cause sudden and significant spread changes.
- Unexpected Economic Events: Unforeseen events can disrupt markets and impact spreads.
- Market Opening or Closing: Spreads may widen when markets open or close due to lower liquidity.
Additionally, the type of instrument being traded plays a role. Major currency pairs, which are traded in high volumes, generally have narrower spreads compared to exotic pairs, which typically have wider spreads.
To anticipate periods of widened spreads, it’s advisable to monitor our Economic Calendar for important news events.
Where Do I Check the Spread's Size?
There are several ways to check spread values, including the following:
Liquid Charts Regular
On Liquid Charts Regular, you can easily view the spread value by adding it to your watchlist. To do this, click on the three-line icon on the right side of the screen and select the Spread column. This will display the spread in pips for all the instruments on your watchlist.
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Liquid Charts Pro
On Liquid Charts Pro, you can easily view the spread value by adding it to your watchlist. To do this, click on the 'View' button on the left side of the screen, navigate to 'Show' and select the Spread column. This will display the spread in pips for all the instruments on your watchlist.
MT5
On MT5, right-click on an empty space within the watchlist, navigate to 'Columns', and click on 'Spread' to display the spread values.
Related FAQs
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- Leverage, Margin Trading and Requirements
- What is a Stop-Loss and a Take Profit?
- Trading News Events
- Trading Account Types