Notes on Apr 5, 2022
9:02 minutes
Crypto Academy - Technical Ninja
Risk Disclaimer: Trading can contain substantial risk and is not suited for every investor. An investor could potentially lose all or more than their initial investment. “Risk capital” - is money that can be lost without jeopardizing one’s financial security or lifestyle. Only “risk capital” should be used for trading and only those with sufficient risk capital should consider trading. iMarketsLive is not a licensed financial advisor nor does it give out financial advice. The user of IML products and/or services assumes full risk and responsibility for their trading activity. Past performance is not indicative of future results. Individual results will vary due to a variety of market and timing conditions.
How the Spread of Cryptocurrency may vary from FOREX
Can the Spread be Manipulated?
How to Factor Spread into your Trades
Understanding Bid/Ask on an Exchange
Spread
Fixed Spread: Bid/Ask is constant regardless of market conditions
Variable Spread: Fluctuates depending on the availability of an asset.
If there are low levels of trading activity the spread can be fairly small, but it may widen at any time due to economic events or other circumstances.
Price must move beyond the spread in order for a trade to be considered in profit.
In Summary: Cryptocurrency spreads are typically larger than FOREX Pairs, and it is important you are aware of what the average spread is on whatever exchange or platform you are trading within.