Trading with a low spread is often a requirement if you want your strategy to be successful. The spread meter indicator visually shows as a bar graph the current spread on the chart for the symbol of the chart, very useful to identify low volatility.
What Is Spread?
The spread is the difference between the Ask price and the Bid price which is the difference between the price someone is willing to sell an asset and the price someone else is willing to buy the asset. With brokers, the spread is their profit margin as they are charging the spread to the customer and for traders, the spread is the cost they pay the broker to execute a trade.
How to Use Indicator
The indicator is very easy to use, just attach it to the chart symbol you wish to use and set the location of the meter, currently, you can only choose, top (left, centre or right), the bottom position does not work.
The step value in pips is important, this is the value of each bar, so for a Forex symbol which is usually a few pips, you can set it to .1 pip per bar, there are 15 bars so if the meter goes into the red you know the spread is around 7 pips. If you use a symbol with a high spread like Gold that could be 10 pips, then set the step to 10, experiment with the value until you find the correct setting.
Spread Widening Alerts
During periods of low volume trading, the spread has increased (widen) to a point where it can take out tight stop losses, this is a common question many traders ask, is how to manage this type of behaviour. We have created an indicator that will send an instant Telegram message directly to your mobile phone the moment the spread starts to widen.
How To Install & Open
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform. Remember, this is an Indicator.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.
