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Lesson 11 of 20

Spread, commission and swap

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Every trade starts slightly negative. Understanding exactly why keeps you from blaming the market for costs you agreed to.

1. Spread

The spread is the gap between the bid (what you can sell at) and the ask (what you can buy at). Buy EUR/USD at 1.08512 when the bid is 1.08502 and you are 1 pip down instantly. Spreads widen during news and in thin liquidity such as the late New York close.

2. Commission

Raw-spread accounts offer near-zero spreads but charge a flat fee, typically around $3.50 per lot per side ($7 round turn). For an active trader that is often cheaper than a wider zero-commission spread; for someone trading micro lots occasionally, it rarely matters.

3. Swap / rollover

Holding a position past the daily rollover (usually 21:0022:00 UTC) means you pay or receive interest, based on the rate difference between the two currencies. Swap can be positive, but it is charged triple on Wednesdays to account for the weekend.

CostWhen chargedWho it hits hardest
SpreadOn every entryScalpers
CommissionOn entry and exitHigh-frequency traders
SwapDaily at rolloverSwing and position traders

Add it up before you trade

A 10-pip scalp on a pair with a 2-pip spread gives away 20% of the target to costs before you start. Match your target size to your cost base — or trade instruments where the cost is a rounding error.

Spreads from 0.0 pips on raw accounts, with transparent commission and no deposit fees.

See Exness spreads

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