The spread is the difference between the price of selling (Bid) and that of buying (Ask) a financial instrument at a certain moment in time. The purchase / sale price is formed depending on the best market price. Funds are spent on the spread both when opening and closing a position. It forms the bulk of the costs spent by traders when working on the Forex market. The lower the spread difference, the more profitable the trade will be.
When using this discount as part of the Alpari Cashback Program, you can get up to 25% of your spread costs back.
How does it work?
Let’s consider an example for a purchase made on EURUSD of 5 lots. Say the spread for opening a position is 1.3 points (65 USD) and to close a position is 1,1 point (55 USD).
To calculate, we half the spread for the opening (0.65 = 32.5 USD) and half it for the closing (0.55 = 27.5 USD) of the position1.
Funds spent on the spread in our example total 60 USD.
If you are using the 25% off your spread discount then you will save 15 USD2.
↑To calculate the spread size, the cost of a point in the account currency needs to be multiplied by the amount of spread points. The cost of each point for each currency pair can be calculated using our calculator.
↑The maximum compensation amount is 800 USD per month (or equivalent in other currency at time of transfer).