I just truly understood the concept of spread in the Forex market and why it is so important for trading.

Spread is the difference between the price the broker is willing to buy (Bid) and the price they are willing to sell (Ask). If you understand this mechanism well, your trading plans will become much more effective.

For example, if you buy EUR/USD at 1.05680 but sell immediately at 1.05672, you will lose 0.8 pips right away. Meanwhile, the broker has already made a profit from this difference. It's like buying gold at $500 and needing to sell at $501 or higher to make a profit—that's the spread.

The spread also tells us how much liquidity the market currently has. Normally, the Forex market has a spread of about 0.001%. But if you see a market with a spread of 1-2%, it indicates very low liquidity.

It's important to know that there are two types of spreads. The first is fixed spread, where the broker sets a constant value that doesn't change. The advantage is that you can calculate costs precisely, but the downside is that Requotes may happen frequently, especially during volatile market conditions.

The second type is variable or floating spread, which changes according to market conditions based on supply and demand. The benefit for experienced traders is lower costs and no Requote issues. However, it's not suitable for beginners because the spread can spike rapidly, ruining trading plans.

The question is, which one is better? There’s no universal answer. It depends on each trader’s trading style. Retail traders who prefer small trades may benefit more from fixed spreads. Larger traders who trade frequently, especially during peak market times, should consider floating spreads.

What you must remember is that the more the spread fluctuates, the harder it is to make profits. Therefore, choose a broker with relatively stable spreads and try trading popular currency pairs like EUR/USD and GBP/USD, which usually have fairly stable spreads.

Ultimately, Forex trading is not gambling. It’s a financial transaction that requires planning and strategy. Those who deeply understand spreads and trading systems will have a better chance of success.