Spread is applied automatically and appears as an initial floating loss in a newly opened position. It is calculated in terms of pips, and the actual cost is calculated using the pip value. The terms pip and pip value are usually used for Forex currency pairs.
For example, if we have a USD account and trading DAX 30 (DAX/EUR) the pip value should be converted to USD from the current EUR/USD exchange rate.
In addition, hypothetical trading does not involve financial risk, and no hypothetical tr […]