We must understand this point, most of Forex dealer quote their spreads in terms of pips
. The spread is the main difference between the bid and the ask price of a currency pair. It is the amount that is paid to the dealer for facilitating the trade. Hence, the lower the spread in terms of pips means, less the broker gets paid and the more profits the trader gets to keep in his hand. We should understand how to works Forex market before entering new market otherwise we cannot get profits.