What is the spread concept on forex market?

Forex prices are mainly influenced by international trade and investment flows. Also, affected by the same factors that affect stock and bond markets. Like economic and political conditions, particularly interest rates, inflation and political stability, or in most cases, situations such as political instability affects the currencies on the market. Economic factors, long-term effects, even though, are usually very attractive for traders’ forex intraday trading offers. An instant reaction is causing all the price volatility.

The concept of spread means the difference between buying – selling price which is applying by forex broker.

For example :
Euro: 1,1191 BUY
Euro: 1,1196 SELL

The price difference like 0,0005 is applying as a spread on the global forex market. Spread concept may be one of the biggest advantages of the global forex market. The forex market is provided through intermediary institutions, the income of the spreader. ‘Spread’, briefly, is the difference between purchase and sale prices of commodities or currency pairs on the market. Commodities, you can make trading on price expectations as a result of macroeconomic developments. At the time you sell the value of buying a position or owned the same product will most likely be different again when you buy or sell.

Currency trading can offer investors the opportunity to diversify debt and receivables. The forex market, of course, the investment funds, as a tool to protect against adverse movements in the stock and bond markets can be seen.