Forex spread strategy

May 15th, 2009 | | No Comments Yet

The bid / ask spread is an important factor in forex trading. Basically, the bid / ask spread is established by demands. If a currency have high demand, the spread will be small, and if a currency is in a low demand, the spread will be big. You can get profit from the spread.

Forex spread trading can be a good strategy in your forex trading and has a good potential in giving you profits. Forex spread trading is more useful for the bigger traders compared to smaller traders. There are several spread strategy you can use, but below is my best choice because it is easier to understand.

You will need two account:

  • Account 1: Long the EUR/USD  and Short the GBP/USD
  • Account 2: Short the EUR/USD and Long the GBP/USD

Every day, I will check my position and close positive account and let the negative account. I then reopen again the account that I closed. I will usually do this several hour after the Japan market opens.

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Categories: Forex Trading Strategy

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