Spreads and Slippage
Every Forex trader must contend with spreads. It allows the market to function and it’s the cost of doing business in the world’s most liquid financial markets.
However, for some traders, the same spreads have a larger effect on their trading than others. This is particularly true for scalpers because scalpers generally trade more, and the size of the spreads is a higher proportion of their profit targets.
In this lesson we take a deep dive into the major factors that effect spreads from broker selection, the Forex pair you choose to trade, the time of day you choose to trade, and news announcements.