In the world of forex trading, the difference between the bid and asking price is known as the spread. Thus, a zero spread account is one that doesn’t have any difference between the bid and asking price. A brokerage firm that gives its clients the option of signing up for zero spread accounts is referred to as a zero spread forex broker. Put simply, the transaction fee is replaced by the spread, which means that traders are not required to pay anything. When you are working with a broker that offers you zero pip spreads, you should be aware that when the spread becomes bigger, your cost of trading will increase. But, when the spread is narrow, the cost of trading will be very limited.
On Friday, the evaluation of the cryptocurrency market cap has been sitting around $171B and from there continued its upward movement until today when it reached $185,834,567,541 at its highest point. The evaluation started moving to the downside from there and came down to $178,610,692,940 on today’s low but is currently sitting around $180,5B level as it recovered slightly.
The support level was broken and the evaluation is currently retesting it from the downside for resistance at the moment, and if the resistance is there, I would be expecting the start of an immediate retracement.
Traders have plenty of choices when it comes to picking a broker today. Every day, you will see a new broker adding to the list of already existing brokers. While this competition has made things easy for traders, the brokers have to do more than ordinary to survive in the competition. Brokers like GigaFX have proved that with quality and care given to the traders, you can excel in the competition and eventually win the hearts of hundreds of thousands of traders from all around the world. So, what has GigaFX done differently from the rest of the brokers?
In simple terms trading on margin (whether in a spread betting account or any other), is trading using borrowed money, nothing more, nothing less. Let me give a simple example (I like simplicity!). Suppose you are playing poker and have what you think is a good hand. You have already put £100 on the table, but you have no more funds available. The first option is to fold and walk away from the table having lost £100, in other words 100% of your money. Option two is to borrow some money from a friend and carry on with the hand. Let’s assume this happens and you borrow an additional £100 but still lose the hand – in this case you have lost your own £100, the borrowed £100, but you now owe your friend a further £100 ! Let’s look at the maths of this simple example as follows:
My own trading education started 8 years ago, when I excitedly opened my first account, deposited $10,000 into my trading account, and then waited for the broker to confirm receipt of my funds. A few days later I received an email from my forex broker to confirm that my online trading account was now open. I can remember to this day what happened next!