Spreads Offered

2 min. readlast update: 02.28.2024

At Excent Capital, we understand that different traders have different preferences. That's why we offer two types of spreads to cater to your specific trading style:

1. Fixed Spreads:

  • Definition: Fixed spreads remain consistent throughout the trading day, regardless of market volatility. This means you'll always know the exact cost of entering and exiting a trade upfront.
  • Benefits:
    • Transparency and predictability: Fixed spreads offer clear cost transparency, allowing you to easily calculate your trading costs and potential profits or losses.
    • Focus on strategy: With consistent spreads, you can concentrate on developing and executing your trading strategy without worrying about fluctuating spread costs.
    • Suitable for beginners: Fixed spreads can be advantageous for new traders as they simplify cost calculations and provide a more predictable trading environment.

2. Floating Spreads:

  • Definition: Floating spreads vary throughout the trading day based on various factors, including market liquidity and volatility. During periods of high liquidity and low volatility, floating spreads may be tighter (lower) than the typical fixed spread offered. However, during times of lower liquidity or higher volatility, they may be wider (higher) than the fixed spread.
  • Benefits:
    • Potentially lower costs: In favorable market conditions (high liquidity, low volatility), floating spreads can be more cost-effective compared to fixed spreads.
    • Reflects market conditions: Floating spreads adjust to real-time market dynamics, potentially offering a more dynamic trading experience for experienced traders.
    • Suitable for experienced traders: Traders who understand and are comfortable with managing dynamic market conditions may find floating spreads beneficial.

Choosing the Right Spread for You:

The most suitable spread type for you depends on your individual trading style and preferences. Here's a brief guide:

  • Fixed spreads: Ideal for beginners who value transparency, predictability, and ease of cost calculation.
  • Floating spreads: More suitable for experienced traders who are comfortable with managing dynamic market conditions and potentially benefitting from lower costs during favorable market movements.

We encourage you to carefully consider your trading goals and risk tolerance when choosing an account type and the associated spread structure. If you have any questions or require further guidance, don't hesitate to contact our dedicated customer support team. They are happy to assist you in making an informed decision that aligns with your individual trading needs.

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