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Spread

The difference between the buying price (ask) and the selling price (bid) of the parities (the ratio of the currencies to each other) is called the spread.
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The difference between the buying price (ask) and the selling price (bid) of the parities (the ratio of the currencies to each other) is called the spread.

What is Spread?

The place where investors do business under government control for the purpose of buying, selling and exchanging is called the Stock Exchange. Spread , on the other hand, is the difference between the buying and selling price of a product in the stock market. Spread is expressed as Pip (Price Interent Point -means “percent to be seen” in Turkish). Therefore, it is necessary to have a good understanding of the concept of Pip in order to make the concept of Spread clear and profit.

What is Pip and What Does It Do?

The pip is used for international currency and finance, and for investors it is a measure of exchange of value. It is used as the unit of change in value equality in international money markets. This difference is not a big difference, but it is very important, as the product prices in the stock market operate in a fractional way. Pip is the last digit of the fraction that is processed. Since the investor has to pay the Spread when buying or selling a product , he should take care to keep the Spread at the lowest rate in order to make a profit. Spread may vary depending on the market situation. At the same time Spread rateIt is also not fixed, the same ratio does not appear in every product, it may vary from product to product. Therefore, when buying or selling a product in the market, you should check the Spread rates of the products. You have a loss due to the Spread rate of a product you have profited from.

What Are Spread Strategies?

There are certain Spread Strategies for making profit . By applying these strategies, you can strengthen your investments much more. The first thing you need to do is to have a low Spread rate of the product you bought. Also, do not sell immediately after the product you have purchased, check the amount of Spread you paid before purchasing the product and wait until it exceeds this amount. Pay attention to the volatility rates in the market. Finally, choose the Fixed Spread type in order not to be affected by the increases and decreases of the markets.

What are the Spread Types?

There are two types of Spread as Fixed Spread and Dynamic Spread . The most preferred between the two is the Fixed Spread. The name of this variety has been determined as Fixed Spread, as the ratio is generally within certain ranges and is not affected by every variable. But for another type of Spread , the same is not true for Dynamic Spread . Dynamic Spread is affected by the markets and it may increase or decrease depending on the market situation.

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