What is spread cost?

Deriv’s foreign exchange spreads change according to market price changes. Deriv’s goal is to provide the smallest spreads in most cases, but when the market price rises, Deriv’s spreads will also change.

In trading, the spread represents the price difference between the long (buying price) and short (selling price) of the traded product. Spread is one of the main costs involved in foreign exchange and CFD trading-the smaller the spread, the higher your profit as a trader. The spread is the source of the broker’s profit for each transaction. Essentially, it is a commission that replaces brokerage fees.

Deriv exchange provides a transparent quotation system. The spreads of Deriv’s MetaTrader 4 platform are floating, and all quotes come from the world’s leading banks and institutions and other top liquidity providers.

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How to view real-time spread?

In trading, the spread represents the price difference between the long (buying price) and short (selling price) of the traded product. Spread is one of the main costs involved in foreign exchange and CFD trading-the smaller the spread, the higher your profit as a trader.

Deriv’s quotation data comes from a number of leading global liquidity providers and banks, which allows Deriv to provide market-leading ultra-low spreads, where the spreads for the original account are as low as 0 points, and the spreads for the standard account are as low as 1.0 points.

If you want to view the real-time spreads of all Deriv’s products, you can view them by visiting the MetaTrader 4 trading platform.

On Deriv’s trading platform:

  1. Enter the market quotation window area;
  2. Right-click in the window area, and then click “Spread”;
  3. A new column appears, showing each foreign exchange currency pair, commodity or index Real-time spreads.

In addition, you can also view real-time spreads at any time on your favorite mobile devices through the MetaTrader 4 mobile application.

In principle, the smaller the spread, the lower the transaction cost. The greater the spread, the higher the transaction cost.

For example, suppose that the buying price of EURUSD is 1.0984 and the selling price is 1.0983. The spread can be calculated by subtracting 1.0983 from 1.0984-the spread is 0.0001 or 1 pip.

On the Deriv exchange platform, the quotation is up to 5 digits after the decimal point.

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