Manage and Minimize Forex Spread
In the previous article we covered the topic of Forex Spread. We talked about what Spread is, and how we calculate it.
All novice traders have come across opening a position and being immediately at a loss grade, and not understanding why. Today we bring you three ways to manage and minimize spread in your trades.
1 - Trade only during the most favorable trading hourswhen many buyers and sellers are in the market. As the number of buyers and sellers of a given currency pair increases, competition and demand for trades increase and market makers limit their spreads.
2 - Avoid buying or selling currencies with few transactions. Many market makers compete for trades when you trade popular currencies, such as the GBP / USD pair. If you trade a currency pair with few trades, there may only be a few market makers to accept the deal. So if competition is diminished, they will maintain a wider spread..
3 - Choose a broker that offers a fixed spread or low spreads. We advise taking a look at the menu. Recommended Broker, at the top of the website