Width to the cost

When we say the width to the cost in the forex market, it stands for the cost arising from the spread and the commission fees. It also indicates how many points market movement brings about situation under which the investor would be made to have no loss. In case of USD-JPY, it is usually expressed by points. If your width to the cost is 10 points, the purchase at 120.55 needs 10 points increase toward 120.65, where you are ready to take profit. The narrower width to the cost is, the more chance for advantageous situation for all investors. In case of the forex market, it is easily calculated the width to the cost should be equal to summation of the spread on the price quotation and a round trip commission fees.