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The spread:
Operating in the foreign exchange market carries a series of costs that can slow down our profits; Knowing them and knowing their execution will help us to be more conscious investors since we can better plan our investments.
At all times, a financial asset has two prices: the purchase price and the sale price. These two prices are the ASK PRICE (market offer price) and the BID PRICE (market demand price). In other words, from the trader's perspective, the trader buys at the ASK price and sells at the BID price.
The differential between these two prices is called SPREAD or also called a fork, the spread is a measure of liquidity (the higher the liquidity, the lower the spread and vice versa, the lower the liquidity, the higher the spread).
The spread is something to consider before making any operation, you must pay close attention to the spread that is there at that moment and above all, how much money does it cost you to pay it? That way you will know the cost of your operation. In this video you will learn its importance and how to calculate it so as not to risk more than what is established per operation.
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