what is a spread return and why a trader needs it

Anyone who comes to the market to make money gets acquainted with the basic concepts related to trade. Among them is the spread. This is the difference between the selling price and the purchase price of the trading instrument. It is this difference that constitutes the broker’s main income. The spread is charged for each trade. It is counted in paragraphs. At first glance, it may seem that the amount that the trader loses due to the spread is quite insignificant and there is no need to pay special attention to it. But in fact, it may not be so. If a trader makes multiple trades during the trading day and does so in significant quantities, the losses resulting from the spread can be very tangible for his deposit. The spread reduces the amount of income earned from the trade or increases the amount of the loss. However, in recent years, ochomanie that can be made with the right services has become popular with entrepreneurs.

How the spread return is

Spread Return Scheme is quite simple. The broker concludes a partnership agreement with the service and shares part of the received spread with it. This service, in turn, returns part of the trader’s spread. As a result, each participant in this process benefits. Entrepreneur and service – in the form of a sum of money. Well, the broker at the expense of returning the spread attracts new clients. The size of the spread may vary. But usually it is 50%. In fact, it turns out quite well. If, say, the total spread on a trader’s trade was $30, a $15 return wouldn’t hurt at all.

What you need to do to return spread

If you decide to use this option, you first need to open a trading account with a broker that offers a spread return. You can select it from the proposed list of companies that is in the discount service. Then the system will start working automatically. You trade and in this way the funds will flow into your trading account, which is part of the spread you paid in the trades. Some services allow you to choose a place to fund this money: a trading account, an EPS wallet or a card. Spread return is particularly effective for scalping. It does not matter if it is a manual, with the help of an advisor. I would also like to note that some brokerage firms reimburse part of the spread to the traders themselves, i.e. without the participation of a corresponding service. However, for this purpose, the trader must meet certain conditions of the broker. Return spread is in fact an additional earnings for the trader. And such an opportunity, if necessary, can be seized. Inga Fedorova 27.10.2020 Record What such a return spread and why a trader needs it first appeared magazine forEx Traders forex-for-you.ru.