Spread is a fee that arises from the difference between the bid (selling price) and ask (buying price) in asset trading, such as BTCUSD, ETHUSD, and LTCUSD. Each asset has a different spread calculation.
Spread Calculation Formula
[Spread * (Contract Size * (10 ** -Digit) * Lot)] * Rate Account Currency
Formula Components
- Spread: The number of points for the asset
- Contract Size: The contract size (e.g., 1)
- Digit: The number of decimal places
- Lot Size: The number of lots opened
- Rate Account Currency: The exchange rate of the account currency
Spread Calculation Examples for Cryptocurrencies
- BTCUSD (Bitcoin)
- Spread: 3,000 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 3000) * 1 = 30
Spread cost: $30 per lot
2. ETHUSD (Ethereum)
- Spread: 3,000 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 3000) * 1 = 30
Spread cost: $30 per lot
3. LTCUSD (Litecoin)
- Spread: 74 points
- Contract Size: 1
- Digit: 2
- Lot Size: 1
- Rate Account Currency: 1
(1 * 0.01 * 74) * 1 = 0.74
Spread cost: $0.74 per lot
Notes
- Spread values may change depending on market conditions.
- Choosing assets with lower spreads can reduce trading costs.
- It is recommended to check real-time spreads on the platform before trading.
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