Live Forex Spreads

A spread is essentially the difference between the bid and the ask price. As traders always trade one currency for another, Forex currencies are often quoted based on the current price compared to the other. Traders bet whether the price of the currency pair will be lower than the bid price or higher than the ask price. The narrower the spread, the more attractive the currency pair is because the transaction cost, the cost of entering and exiting a trade, is lower.

Fixed or Variable Spreads

AAA Trading operates with variable spreads, just like the interbank forex market. Because fixed spreads are usually higher than variable spreads, in case you trade fixed spreads, you will have to pay for an insurance premium.

Many times, forex brokers who offer fixed spreads apply trading restrictions around the time of news announcements – and this results in your insurance becoming worthless.