By lun neh 
What is Forex Spread?
Forex spread refers to the difference in pips between the bid price and the ask price of a currency pair. A “pip” is the smallest unit of change in a currency pair, and is typically equal to 1/100th of 1%. For example, if the EUR/USD bid price is 1.0850 and the ask price is 1.0851, the spread would be 1 pip.
What Affects The Spread in Forex?
There are a few different factors that can affect the spread in forex trading. One is the time of day that you are trading. The spread will usually be wider during times when the market is more volatile and there is more activity. Another factor is the currency pair that you are trading. Some pairs tend to have wider spreads than others. And finally, your broker can also affect the spread. Some brokers add a commission on top of the spread, while others build it into their quoted prices.
What Causes The Spread To Increase in Forex?
If there is an important news announcement or event that causes higher market volatility, the forex spread may increase. If the spread on a variable rate mortgage widens dramatically, your positions could be closed or you’ll be put on margin call.
What is a Margin Call?
A margin call is a demand from your broker for you to deposit additional funds into your account to cover losses. If your account falls below the required minimum, your broker may automatically close out some or all of your positions to bring it back up to the required level. Margin calls can be caused by a number of factors, including higher than expected market volatility or a sudden drop in the value of your collateral.
How To Avoid Margin Call?
There are a few things you can do to avoid a margin call. First, make sure you understand the risks involved in forex trading and only trade with money you can afford to lose. Second, use stop-loss orders to limit your downside risk. And finally, don’t be afraid to take some profits off the table when the market is moving in your favor. If you can follow these guidelines, you’ll be less likely to experience a margin call.
Does Forex Spread Change?
Forex spread can change depending on a few different factors, including the time of day that you are trading and the currency pair that you are trading. Some currency pairs tend to have wider spreads than others. Your broker can also affect the spread.
How Do Brokers Make Money From Spread in Forex?
There are a few different ways that brokers can make money from the spread in forex trading. One is by adding a commission on top of the spread. This is usually a small fee that is charged for each trade. Another way is by build the spread into their quoted prices. This means that they will add a little bit extra to the bid and ask prices that they quote to you.