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What are Spreads?

The gap between the sell (ask) and the buy (bid) price of a financial asset

A spread is one of the denominators in CFD and FX trading in regard to costs. The value increases as spread decreases and becomes tighter. A spread is the commission brokers get from each trade. It acts as a replacement for charges and brokerage fees, making the process direct without any intermediate parties’ involvement. Value of the commission decreases when the spread becomes tighter.

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