By Investment U Research Team Spread trading is a form of speculative trading that leverages the buy/sell spread of a security and your investment amount to determine the gains or losses of the position when it’s closed. It’s commonly associated with FOREX indices and is an advanced trading strategy that requires a Level 2 trader account, for real-time access to the spreads of securities from market makers.
With real-time information on bid/ask amounts, traders can use their due diligence to speculate on the movement of a security and open a position relative to that movement. The bid amount is multiplied by change in spread—its net …read more
