Forex glossary
Fixed spread
A fixed spread is a bid-ask difference held at a specified level under the provider's stated conditions. Coverage, exceptions, hours and execution rules come from tariff and agreement. The label does not guarantee an identical total cost for every trade.
Illustrative example
How does it work in practice?
A hypothetical tariff fixes EUR/USD spread at two pips during stated hours. For 10,000 EUR and a 0.0001 pip, the price difference is 2 USD; commission can increase total cost.
A case to work through
Same spread, different quantities
EUR/USD model: spread 2 pips, pip 0.0001; quantities 5,000 and 15,000 EUR, without other costs.
- The first ask–bid difference is 1 USD.
- The second is 3 USD; fixed pips do not imply fixed cash cost.
What follows? Specify volume and tariff coverage before comparing costs.
Example boundary: The spread is fixed only under contractual conditions and exceptions.
A useful distinction
Fixed spread / Variable spread
A variable spread changes the price difference; a fixed spread holds it under stated conditions.
Check your understanding
Convert one fixed spread for two position quantities.
Show the answer and explanation
3 USD
10,000 × 3 × 0.0001 = 3 USD.
Orders, prices and execution quality
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Related terms
Sources and documentation
- MetaTrader 5: Market Watch
Symbol specifications define contract size, volume constraints, margin calculation, execution rules and the commission charging model.
Document read: - MetaTrader 5: basic trading principles
Orders, deals and positions; FOK, IOC and partial-filling policies.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.