Beat the market
How to beat the market’s bid-ask spread?
The spread is what you have to pay in order to buy and sell shares on the market. When you trade shares on the forex market, you are actually trading in the spot price. The real difference between buying and selling prices (also known as a spread) is like transaction cost.
Forex, or any sort of trading is all about a couple of simple strategies to reduce the spread between buying and selling prices. Yes, you read it right! This article is all about paying a minimum amount of money to the broker in order to get the maximum profit. But how can you reduce the spread between buying and selling prices? Simply, by looking at the real price of the asset.
The real value of any security or commodity can differ from the bid or ask prices. In order to beat the market spread, you need to find the real value of the asset. You can do this by analyzing the market trends or by using technical indicators. If you are good at analyzing the market, then you can use your skills to find the right time to buy or sell an asset.
The best way to use technical indicators is to use them in combination with each other. For example, you can use a moving average to find the trend and then use a Fibonacci level to find the right time to exit or enter again.