What is a "spread" in Forex trading, and why is it important to understand?
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In Forex trading, a "spread" is the difference between the bid price (the price at which you can sell a currency) and the ask price (the price at which you can buy a currency). It is important to understand because it represents the cost of trading and can affect profitability; narrower spreads generally indicate lower trading costs, while wider spreads can increase expenses for traders.
is exchanging one currency for another to profit from the trade.