All assets on the trading platform display a "Buy" and "Sell" price with the difference between the buy price and the sell price being called a Spread. The spread can be found in between the "Buy" and "Sell" price as seen below.
In Forex, a pip is the 4th number after the decimal and is known as 1/100th of a cent.
In all other markets (Indices, Commodities, Stocks, Cryptocurrencies and ETSs), is it known as a "point" and each point equals 1 cent.
The buy price will always be higher than the sell price, and the underlying market price will generally be in the middle of the these two prices.
Along with swaps, spreads are how 24option benefits financially. Instead of charging a separate fee for making a trade, the cost is built into the buy and sell price of the asset you wish to trade.
When you are about to place a trade, you will either "buy" or "sell", depending on whether you believe the underlying market price will rise or fall.
Once your trade is placed and the price has moved in your favour beyond the cost of the spread, it will be a profitable trade. If it remains between the spread range or outside of it against you, the trade will be a losing trade.
More competitive spreads are offered via our VIP Accounts, offering better value to reduce the overall cost of trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please click here for the CFDs risk warning which specifies the % of retail investor accounts that lose money on a 12 month period on our platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.