Spread on Trendo ECN Accounts | Calculation and Factors

Spreads in Trendo Broker Trading

In this article, you will learn about the concept of spread in ECN accounts at Trendo, how it is calculated, and the factors affecting it. The spread is one of the main trading costs that directly impacts the net profit and loss of a trade.

1. Definition of Spread

The spread is the difference between the Ask price (buy) and the Bid price (sell) of a trading instrument. At the moment of opening a trading position, this price difference is charged as an initial cost from your account.

Example:
 If the Ask price of the EURUSD pair is 1.20003 and the Bid price is 1.20005, the spread will be 0.00002 USD, or 0.2 pip (2 points).

In ECN accounts at Trendo, spreads are floating (variable) and start from 0 pips or the minimum possible value. This is possible due to direct access of traders to real markets and the use of the best price references available.

2. Factors Affecting Spreads

Market Liquidity

  • Higher market depth (more buy and sell orders) results in tighter and more competitive spreads.

Trading Hours

  • During overlapping sessions of major markets (e.g., London and New York), liquidity increases, and spreads decrease.

  • During low-liquidity hours (e.g., midnight UTC), spreads may widen.

Market Opening and Closing Times

  • At the start of the week or just before market close (e.g., end of Friday), spreads are usually higher due to reduced liquidity and unbalanced orders.

Price Volatility and Economic News

  • When major economic, geopolitical news is released, or during high volatility, spreads may temporarily widen due to supply and demand imbalance. This is a natural market condition, and Trendo does not intervene in these fluctuations.

Type of Trading Instrument

  • Major currency pairs (e.g., EURUSD, GBPUSD) usually have lower spreads compared to minor pairs or highly volatile instruments.

3. Spreads of Major Instruments at Trendo

  • Major Forex Pairs: Floating from 0.0 pips

  • Gold (XAUUSD): Average below 0.5 pips

  • Stock Indices (Dow Jones, Nasdaq): Approximately 1 pip

4. How to View Spreads

Trendo Trading Platform

  • The spread of each instrument is displayed next to the symbol in the trading platform.

Trendo Website

  • You can check the real-time spreads of instruments in the Price Overview section.

Price Charts

  • The distance between the Ask and Bid lines on the chart indicates the spread value.

In case of any errors at any stage, contact Trendo 24/7 support for verification and guidance.