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14 Oct 2025

Understanding Spread and Commission in Trading

The spread is the difference between the buy and sell price of a financial instrument and represents the profit a broker earns for executing a trade.
The commission is a fee charged by some brokers for each buy or sell transaction. In other words, the spread is a cost included in the price, while the commission is a separate cost. Understanding these two concepts helps traders accurately estimate trading costs and choose the most suitable broker

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