Fixed and variable spreads

There are both benefits and pitfalls of trading with variable spreads. Some companies quote a headline “from a minimum of...” which at first glance may seem like a good deal. However it is worth comparing this minimum spread against their average spread; the average will in all likelihood give a truer indication of the spread you will see when you come to trade. For more information click here [http://5starsforex.com]

How spread is calculated
Currencies are always quoted in pairs (e.g. USD/CAD). The first currency is called the base currency and the second currency is called the counter or quote currency (base/quote). For example, if it took C$1.20 to buy US$1, the expression USD/CAD would equal 1.2/1 or 1.2. The USD would be the base currency and the CAD would be the quote or counter currency. For more info go to http://5starsforex.com