Informational and instructional video with audio discussing the difference between, and advantages and disadvantages of, two types of brokerage spreads – the fixed spread and the variable spread. Many brokers often use both versions so it is worth knowing the difference between the two and how those spreads are used and manipulated by various brokers.
- If you are using a fixed spread broker, your spread will remain the same at all times no matter how volatile the market is.
- If you are using a variable spread broker, your spread will change according to market volatility.
- Spreads widen when we get high market volatility and when the market is quiet.
“”just be a little more careful, and do a little bit more research””