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How Brokers Earn Money
1.Spread: The small difference between the buy (ask) and sell
(bid) price.Example: EUR/USD = 1.1000 / 1.1002 → Spread = 2
pips.
2.Commission: Some brokers charge a fixed commission per
trade (common with ECN brokers).
3.Swap or Overnight Fee: Charged when you hold trades
overnight, depending on the interest rate difference between
currencies.
Types of Orders in Forex Trading
When you trade, you use different types of orders to control how
and when your trades enter or exit the market. Each order type
gives you a specific kind of control-some open trades instantly,
others wait for price conditions to be met.
Market Order
A Market Order is the simplest and most direct type of order.
It means you are buying or selling immediately at the current
market price.
Example: If XAU/USD is trading at $2350.00 and you click “Buy,”
your trade will open instantly at the best available price (which
could be $2350.10 or $2349.90 depending on volatility).
