There are 2 types of currency prices at Forex - Bid and Ask. The price we pay to buy the pair is called Ask. The price, at which we sell the pair, is called Bid.
Spread is the difference between these two prices. In other words, it is a commission you pay to your broker for every transaction.
SPREAD = ASK – BID
The following types of spreads are used in FBS:
- Fixed spread – the difference between ASK and BID prices doesn’t change regardless of the market conditions. This way you know in advance how much you will pay for a trade.
This type of spread is applied to the FBS *Micro account.
The other variation of fixed spread is zero spread - in this case, the spread is not applied; the company takes a specified commission for the order opening.
This type of spread is applied to the FBS *Zero Spread account.
- Floating spread – the difference between ASK and BID prices fluctuates in correlation with the market conditions.
Floating spreads usually increase during important economic news and the bank holidays when the amount of liquidity in the market declines. When the Market is calm they can be lower than the fixed ones.
This type of spread is applied to the FBS Standard, Cent, and ECN accounts.
The minimal and typical spread you can find on our website, Contract specifications page.
* For instruments with fixed spread or fixed commission, the Company reserves the right to increase
spread in case spread on the basic contract exceeds the size of the fixed spread.