A fixed spread refers to the consistent difference between the buying and selling prices of a financial asset, such as currency pairs in forex trading. Unlike variable spreads, which can change based on market conditions, fixed spreads remain the same regardless of market volatility. This stability can help traders better predict their costs when entering or exiting trades. Traders often prefer fixed spreads because they provide clarity and certainty in trading costs. This can be particularly beneficial during times of high market activity, as it allows for easier budgeting and planning. Many brokers offer fixed spreads to attract traders looking for reliable pricing.