A high spread means there is a large difference between the bid and the ask price. Emerging market currency pairs generally have a high spread compared to major currency pairs.
A higher than normal spread generally indicates one of two things, high volatility in the market or low liquidity due to out-of-hours trading. Before news events, or during big shock , spreads can widen greatly.A low spread means there is a small difference between the bid and the ask price. It is preferable to trade when spreads are low like during theKeeping an eye on changes in the spreadhappen sporadically and depending if expectations are met or not, can cause prices to fluctuate rapidly.
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