How much is your spread?

05 June 2024 08:16
Updated

Spread is the difference between the current Bid and Ask price, with the value given in pips (percentage of points) or points.

For example, if the EURUSD Bid price is 1.08000 and the Ask price is 1.08010, the difference is 0.0001. In this instance, the spread is 1 pip.

How much is your spread?

Accounts and instruments on FXTM Accounts offer floating spreads, which means they change to reflect market conditions. You can find typical spreads for the different instruments and various account types on Contract Specifications.

Note: A typical spread is the average cost of a spread on a "normal" day that is calculated by analysing the spread trends on an instrument over a period. As a result, a typical spread can be different from the real-time spread shown on the Trading platform market watch area.

Do your spreads change during news releases?

Spreads are known to increase (the difference between Ask and Bid prices widens) when market conditions are volatile and are dependent on liquidity providers, not FXTM.

How do I check the spread for each instrument?

In order to show the spread on each instrument, please follow the steps below

Log in to the MT4 terminal
Right-click on the "Market Watch" area and then select "Spread" from the options listed
Now, the live spread for each instrument will be shown in a new column, indicated by "!"

Pip in practical terms, is one-hundredth of one percent (1/100 x .01) and appears in the fourth decimal place (0.0001) for non-JPY currency and in the second decimal place (0.01) for JPY currency. For instance, if GBPUSD moves from 1.28044 to 1.28054 that is .0001 USD move higher and it is one pip.

Point is fractional pips or pipettes. A point is equal to one-tenth of a pip. So, 10 points = 1 pip. For instance, if GBPUSD moves from 1.28044 to 1.28045 that is .00001 USD move higher and it is one point.