📈 The Bid, The Ask, and The Unfold — The Actual Price of Each Commerce
💡 The Lesson
Each time you click on purchase or promote, you pay a hidden price — it’s referred to as the unfold.
It’s small, however it provides up quick.
Understanding it is step one to changing into a cost-efficient dealer.
💰 Bid vs Ask Defined
Whenever you take a look at your chart, there are all the time two costs:
The distinction between them = Unfold.
Instance:
EURUSD = 1.0850 (Bid) / 1.0852 (Ask) → unfold = 2 pips.
If you happen to purchase, you enter at 1.0852 and also you’re immediately down 2 pips.
That’s the price of liquidity — your “entry tax.”
⚙️ Why It Issues
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Scalpers hate broad spreads — they eat income.
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Swing merchants ignore them — they’re small in comparison with bigger strikes.
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Brokers earn from spreads — not simply commissions.
Even if you happen to win 60% of trades, poor unfold consciousness can quietly destroy your edge.
🔑 Professional Tip — Commerce Good, Not Costly
✅ Commerce throughout lively classes (London + New York overlap)
✅ Persist with main pairs — they’ve the tightest spreads
✅ Use restrict orders when doable
✅ Keep away from buying and selling throughout information spikes — spreads explode
🚀 Takeaway
Your technique could be excellent, but when your spreads are excessive — your math is incorrect.
Know your value per commerce.
As a result of in buying and selling, income are earned on entries, not exits.
📢 Be a part of my MQL5 channel for extra buying and selling fundamentals and actual examples:
👉 https://www.mql5.com/en/channels/issam_kassas
