ChatterBank1 min ago
Fixed spreads and variable spreads
8 Answers
What is the difference between fixed spreads and variable spreads? Please enlighten me on this aspect.
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Best Answer
No best answer has yet been selected by Mathew.horri. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.This involves not only a good broker, but it is also necessary to research how the spreads are priced. As the trader pays quite a bit of money over a period of time, it is important to find a good Forex broker. The broker often offers a trader variable and fixed trade spreads, this depends on the trading styles that are individualized most times. The buy and sell price of a currency pair fluctuates in variable spreads and widen in volatile market conditions and is low during market inactivity. Being predetermined, the fixed spread stays constant in trading conditions. A small premium is paid in quiet market conditions when the variable spread is lower with the broker ensuring that the spread will not be widened at any time. As a better strategy, fixed spreads are convenient for the trader unlike the variable that inflates transaction costs for the trader at critical times. Please visit: http://www.ismarkets.com for detailed information.
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