In fact, spread is very important if we want to trade systematically. Because once you understand how it works, you'll know your actual costs and be able to strategize thoughtfully.

Simply put, the spread is the difference between the selling price (Bid) and the buying price (Ask) of any asset, whether it's money, stocks, or digital currencies. In the Forex market, it’s the difference between Bid and Ask in a currency pair. The same applies to stocks.

For example, if you see the EUR USD price at Bid 1.05672 and Ask 1.05680, it means that if you buy and close immediately, you will lose 0.8 pips right away, and the broker will profit 0.8 pips. This happens because brokers need to make a profit somewhere.

The spread teaches us one important thing: the market's liquidity. Forex markets usually have a narrow spread of about 0.001%. But if you encounter a market with a spread of 1-2%, it indicates that liquidity has worsened.

There are two types of spreads you need to know. The first is a fixed spread. It is set in advance and does not change. The advantage is that we can calculate costs accurately, but the downside is that Requotes may happen frequently because the Forex market is very volatile. Brokers need to adjust the spread quickly, and once it changes, the system will lock us in until we accept the new price, which is often worse.

The second type is a variable spread. Its value changes constantly according to real market conditions. Brokers do not set it; it fluctuates based on supply and demand. The advantage is that fast traders benefit because costs are usually lower, and there are no Requotes. The disadvantage is that it’s not suitable for scalpers because it changes too quickly. For beginners, it can lead to much higher spreads, causing potential profits to vanish in an instant.

As for which is better, honestly, it depends on our trading style. Retail traders who prefer small trades often benefit more from fixed spreads. Meanwhile, traders who trade frequently, especially during market peaks, may find variable spreads more advantageous. And if we scalp or want to avoid Requotes, we should use variable spreads.

However, there is one rule to remember: the more the spread fluctuates, the harder it is to make profits. Therefore, choose brokers with stable spreads and trade popular currency pairs like EUR USD or GBP USD, as they tend to have narrower spreads than less common pairs.

In summary, if you understand spreads thoroughly, you can trade systematically. Forex trading is a real financial transaction, not gambling. Everything can be planned and calculated. Those with deep knowledge will definitely have a better chance of success than others.