Spread is a fee that arises from the difference between the Bid (selling price) and Ask (buying price) in asset trading, such as BTCUSD, ETHUSD, and LTCUSD. Each asset has a different spread calculation.
Spread Calculation Formula
[Spread * (Contract Size * (10 ** -Digit) * Lot)] * Rate Account Currency
Formula Components
- Spread → The number of points for the asset.
- Contract Size → The contract size (e.g., 1).
- Digit → The number of decimal places.
- Lot Size → The number of lots opened.
- Rate Account Currency → The exchange rate of the account currency.
Spread Calculation Examples for Cryptocurrencies
- BTCUSD (Bitcoin)
- Spread: 3,000 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 3000) * 1 = 30
Spread cost: $30 per lot
2. ETHUSD (Ethereum)
- Spread: 3,000 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 3000) * 1 = 30
Spread cost: $30 per lot
3. LTCUSD (Litecoin)
- Spread: 74 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 74) * 1 = 0.74
Spread cost: $0.74 per lot
Notes
- It is recommended to check real-time spreads in the platform before trading.
- Spread values may change depending on market conditions.
- Choosing assets with lower spreads can reduce trading costs.
