<p>Gross Processing Margin (GPM) is a crucial metric in the world of trading, particularly for brokers like STB Provider, that operate on the Straight Through Processing (STP) or No Dealing Desk (NDD) model. It represents the difference between the price at which a broker buys an asset and the price at which they sell it to their clients. In essence, GPM is the broker's profit per trade.</p>

<h2>How It Works</h2>
<p>GPM is calculated by subtracting the bid price (the price at which the broker buys an asset) from the ask price (the price at which the broker sells an asset). The formula is:</p>
<p><strong>GPM = Ask Price - Bid Price</strong></p>
<p>For example, if the bid price for EUR/USD is 1.18500 and the ask price is 1.18505, the GPM would be:</p>
<p><strong>GPM = 1.18505 - 1.18500 = 0.00005</strong></p>

<h2>Why It Matters for Traders</h2>
<p>Understanding GPM is vital for traders as it directly impacts their trading costs. A higher GPM means the broker is charging more for their services, which could lead to wider spreads and higher trading costs. Conversely, a lower GPM indicates tighter spreads and potentially lower trading costs.</p>
<p>For instance, on the MetaTrader 5 platform, STB Provider offers spreads as low as 0.1 pips on major currency pairs. This low spread is a result of STB Provider's commitment to maintaining a low GPM, ensuring traders benefit from competitive trading conditions.</p>

<h2>Example</h2>
<p>Let's consider a trader who wants to buy 1 lot (100,000 units) of EUR/USD. If the ask price is 1.18505 and the GPM is 0.00005, the trader would pay:</p>
<p><strong>1.18505 + 0.00005 = 1.18510</strong></p>
<p>This means the trader's entry price is 1.18510, and the broker's profit from this trade is 0.00005 per pip.</p>

<h2>Key Takeaways</h2>
<ul>
  <li><strong>GPM</strong> is the profit a broker makes per trade.</li>
  <li>A lower <strong>GPM</strong> results in tighter spreads and lower trading costs for clients.</li>
  <li>Traders should consider the <strong>GPM</strong> when comparing brokers, as it can significantly impact their trading expenses.</li>
  <li>STB Provider's commitment to maintaining a low <strong>GPM</strong> ensures traders enjoy competitive trading conditions on the MetaTrader 5 platform.</li>
</ul>