Detailed spreads table
Dear customers, due to the split of Apple shares on the last weekend of August 2020 (at a rate of 1 to 4), this share will only be traded in Close Only mode from 24 August. Also, all open trades will be closed on August 28 before the close of the trading session on the Web and MT4 platforms.
Why is the spread changing?
The smaller the gap between the bid prices of sellers and buyers, the smaller or narrower the spread. Wide spread – due to a significant gap between bid and ask. Narrow spread – a phenomenon with respect to instruments with an impressive trading volume.
Among other things, the spread – is part of the broker’s income. The following types of spreads are available:
Not change their meaning under no circumstances
Depend on the current situation in the market
The essence of the spread in trading
Market liquidity is directly related to spread indicators. For example, when the market trades in popular currency pairs, the spreads are small. On some instruments, the values reach only 2-3 points or 20-30 dollars when trading 1 standard lot. It is worth considering that the size of the spread – is, by and large, the transaction value.
When opening a transaction, the spread is automatically taken into account. We can say that the spread is a kind of commission that a trader pays during the opening of a transaction, and this happens automatically. To regulate market liquidity, stock exchanges set limits on spreads. If it reaches its maximum value, trading simply stops.
If the position remains open and is extended the next day, then a commission for using the credit is charged from the trading account. The size of the commission depends on the amount of the transaction and is 0.005% – 0.015% of its size, for cryptocurrencies 0.5%. The commission is charged at 00:00 GMT.