I've just noticed that many people still don't understand what spread is and why it matters in trading. In fact, it's a fundamental concept that you need to know well.

Let me explain simply: spread is the difference between the selling price (Bid) and the buying price (Ask) of an asset. Whether it's currency, stocks, or digital currencies, the principle is the same.

For example, if you want to buy EUR/USD at 1.05680 but can sell at 1.05672, that difference is the spread, which equals 0.8 pips. That's your trading cost. The broker also profits from this difference.

Another interesting point is that the spread helps us gauge the market's liquidity. Under normal conditions, the spread is small, around 0.001%. But if the market's spread widens to 1-2%, it indicates low liquidity.

Regarding the types of spreads, there are two options: fixed spread and variable spread.

A fixed spread is constant and doesn't change. The advantage is you can calculate your costs precisely. The downside is that requotes often occur because, during high volatility, brokers need to adjust the spread quickly, and the system will "block" your trade until you accept the new price, which is usually worse.

A variable spread fluctuates constantly based on market supply and demand. The benefit is no requotes, and for fast traders, costs are often lower, especially during high liquidity. However, the spread is unpredictable and can widen rapidly, especially during major news releases like NFP.

The classic question is: which is better? In my opinion, there's no definitive answer. It depends on each trader's style. Beginner traders who trade small amounts often prefer fixed spreads because costs are predictable. But if you're a frequent trader or want to avoid requotes, variable spreads are better.

Remember, the more the spread fluctuates, the harder it is to profit. So, choose a broker with relatively stable spreads and trade popular currency pairs like EUR/USD or GBP/USD, which usually have lower spreads.

The key point I want to emphasize is that forex trading is not gambling. It's a financial transaction that requires planning. If you deeply understand what the spread is and how to manage it, you'll have a better chance of success.