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What is spread in forex and why can a trade start in the red?

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Summary

Understanding forex spreads-the difference between bid and ask prices-helps traders assess transaction costs, liquidity, market volatility and the impact of economic news before entering or exiting currency trades.

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    What is spread in forex and why can a trade start in the red?

    Understanding forex spreads-the difference between bid and ask prices-helps traders assess transaction costs, liquidity, market volatility and the impact of economic news before entering or exiting currency trades.