Spread Fixed or Varaible?

Discussion in 'Forex' started by Mahmoud, Aug 28, 2006.

  1. Mahmoud


    I learnt the most of the brokers offer Fixed Spread, and a litel offered varaible Spread.
    Which one is better ?
    What are the advantage/disadvatage of both?
  2. Mahmoud, is that you from Paktika?
  3. Mahmoud


    Well! not sure why u have to go that far to Paktika.
    But simply as which is beter ? Fixed ? Varaible? Spread.
  4. sem123


    variable, definately gives you more flexibility, and you become a market maker instead of a market taker.
  5. Mahmoud


    Tkanks sem123
  6. Whoa one word of caution...becoming a market maker may not be all it seems ..just make sure that when you place an offer or bid that it is available to the rest of the market place your in...some allow you to be a market maker but actually what is happining is that you place a bid in the system and the bank stream has to go offered before you deal...

    make sure if you place a bid that others using the system can give that price...
  7. I don't know of any system in the forex spot market that allows clients to place orders that other clients can see. Please correct me if I'm wrong.
  8. royalFX


    Mostly the spead is variable nowadays... NFP...
  9. 1. Trade with an ECN. For avoiding potential dealing desk operation.

    2. Fixed spread makes calculating execution risks easier.

    3. Retail traders are going to be screwed no matter what, compared to institutional traders. (in Forex)