subject: The Impact of Spreads in Day Trading [print this page] Traders need to be aware that the spread represents a significant portion of the average daily range in many pairs.The spread to pip ratio allows us to take only those pairs that offer better ratios for day traders. If you notice even though the USD/JPY offers lower spreads than the GBP/USD, the GBP/USD offer a way better spread to pip ratio making trading "cheaper" or less risky for day traders.
