Admiral Spreads by Asset Category
The spread is the difference between sale and purchase price of an asset. In forex, it is the difference between ask and bid price of a currency pair. The sales price of an asset is usually lower than the purchase price with an online broker. As a result, you will make a loss when you open a position and close it immediately. The loss is equal to the spread.
Conversely, when you open a position that moves into profit, it must cover an amount equal to the spread before the profit reflects. The spread varies depending on the broker and market conditions. For example, you will enjoy tighter spreads during periods of high liquidity and on majors than on crosses.
All Admiral Markets spreads are available in the contract specification section. In other words, traders can check the spread of any asset they want to trade to know the associated charges.
When trading on Admiral Markets you can also use leverage. Learn more about Admiral Markets leverage.
Some of the spreads offered include:
- Gold: 20 pips
- EURUSD: 0.6 pips
- NQ100: 0.8 pips
- SP500: 0.4 pips
- FTSE100: 0.8 pips
- DAX40: 1 pip
- Oil: 3 pips
- Bitcoin: 0.5%
The value of the spread is not always constant. Three factors that influence the spread are:
- Market conditions: spreads are larger during periods of high volatility and macroeconomic announcements
- The volume of financial instrument: this does not apply to retail traders since their orders are too small to affect market price. Market makers often adjust their spreads to compensate traders that deal with large volumes for their additional risks.
- Asset liquidity: liquid markets have tighter spreads. Conversely, low liquidity attracts larger spreads.