What are spreads?

The spread, which represents the trading cost, is crucial in determining your position's profitability. Profit occurs when market movement in your favor surpasses the spread. Conversely, if the market shifts against you beyond the spread, you incur a loss. It's important to note that even favorable market movements are not profitable if they don't cover the spread.

A smaller spread equates to reduced trading costs. However, it's important to account for additional trading expenses. Some brokers charge commissions or use a mix of spreads and commissions, particularly in CFD markets. At Roi Republic, we pride ourselves on offering narrow spreads for a broad range of financial instruments.

Keep in mind that spread sizes are influenced by factors such as market volatility, the size of your investment, and the specific market you're trading in. Typically, more liquid markets have smaller spreads, while larger spreads often signal greater volatility and lower liquidity.