Fixed Spreads
BankeFeX provides fixed spreads consistent regardless of the market conditions.
Fixed spreads provide traders with a constant spread cost, allowing them to determine their bottom line irrespective of market conditions. Regardless of the market's liquidity or volatility, BankeFeX's spreads stay consistent.
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What are Fixed Spreads
A spread represents the gap between the ask and bid prices. In simple terms, it's like a retailer buying a product wholesale and selling it for a slightly higher price. Some platforms adjust this spread based on market volatility, meaning it can vary for each trade during volatile periods.
Calculating variable spreads involves a complex formula considering factors like supply and demand for a specific security and overall trading activity of the underlying asset.
In contrast, fixed spreads let you know your spread cost in advance, making it easier to plan your strategy, whether it's for the long term or daily. This ensures better price transparency and a more predictable cost assessment before you start trading.