ActivTrades offers highly competitive spreads across all available asset classes, including forex, metals, shares, indices, and more.
The more liquid the market you trade, the lower the spread. The lower the liquidity, the wider the spread. This spread is charged only when opening the position; it is not charged when closing it.
Each instrument has a different spread, which is charged when opening the order. Check your platform; when you place an order, you'll notice that it always opens in negative territory. This negative value is the spread cost.
The cost spread is discounted when the order is opened, but it continues to fluctuate every second, even during trading. Therefore, the difference between the bid and ask price at the close of the order may not equal the spread discounted as a transaction cost at the time the order is opened.
Macroeconomic events can affect the liquidity of a given asset or assets and can also affect the spread, causing what we call spread widening. The same phenomenon can occur during market closures and reopenings (rollovers), as many investors withdraw from the market before the close to avoid paying the swap.
The spread is measured in pips, or points, which are the units of measurement used to measure price fluctuations. Pips are calculated in the currency of the country in which the index is traded or in the second currency of a currency pair. At ActivTrades, our spreads start at an average of 0.5 pips on major currency pairs.
Spreads vary depending on the underlying market conditions. At ActivTrades, on average, our spreads start from 0.5 pips on major currency pairs.
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