Why are there spreads?

Updated on Financial 2024-02-09
35 answers
  1. Anonymous users2024-02-05

    The spread is the difference between the bid price and the ask price, and the most obvious external manifestation is that when you enter the platform to place an order to trade, when the exchange rate has not fluctuated, you will find that you have lost part of the money, and the loss of this part of the money is caused by the spread. For example, in the FXSOL platform, EUR|The spread on USD is 3 pips. If you trade 1 lot, your profit will be displayed as -$30 after you place the order.

    That's how spreads work. The amount of the spread is generally charged by dealers, banks and platforms, which is also one of the means of profit for these institutions. Spreads and commissions, while similar, are fundamentally different.

    In some platforms, you can choose whether to add or not, and how much commission to add; Spreads, on the other hand, are fixed and must be charged.

  2. Anonymous users2024-02-04

    It is very important to speculate on foreign exchange at the beginning, choose a regular platform and add your own tempering, and you may soon be profitable. Vice versa.

    The world's platforms are proud to be regulated by the British FSA, because the British financial industry originated at the earliest and has the strictest laws. **Shang recommends choosing their regular first-class ** business, so that there is no commission, and the funds are also guaranteed. There are indeed many new platforms now, but whether they are formal or whether they can withdraw funds still needs to be considered in many places.

  3. Anonymous users2024-02-03

    That's right, the spread here is the commission.

  4. Anonymous users2024-02-02

    What does a bank make without spreads? In fact, the spread is charged by the middleman (bank, dealer), which is equivalent to a commission.

  5. Anonymous users2024-02-01

    The spread is equivalent to the commission earned by the platform and the bank, and no one will serve you in vain, right?

  6. Anonymous users2024-01-31

    It's impossible for each platform to provide free services, which is also a way for them to make money, and it's normal to charge a handling fee. Aren't banks too?

  7. Anonymous users2024-01-30

    This is the commission that the broker earns.

  8. Anonymous users2024-01-29

    A pip represents the smallest unit of movement of the exchange rate, which is normally one basis point, which is the fifth and last digit of the exchange rate ** (in the EURUSD, USD-CHF currency pairs, and in the USD-JPY currency pairs).

    The difference between the spread** price and the ask price is the spread; Different currencies Different trading platforms are different, and spreads are our trading costs.

    The transaction cost of foreign exchange is the spread, now many traders do not charge commissions for opening accounts, and some dealers do not charge commissions directly under **, you can go to Baxter to see, through them to open an account is the original spread of the platform, without any commission.

    By the way, the direct spread in the market is now 2 to 4 points, and customers who choose such a fixed spread can make better profits.

  9. Anonymous users2024-01-28

    The spread is the difference between the bid price and the ask price of the product you operate to buy and sell, in fact, you don't need to calculate the spread directly, you can see the spread directly on your market, this spread is handed over to the trader by everyone who participates in the market transaction, because you use the broker's software, and at the same time participate in the market.

    In fact, it doesn't matter to us whether the spread is large or small, the most important thing is that if you find an analyst who can make you stable profits, then in the end it will be profitable, and the spread will be nothing.

    If you want to make money in this market, you can first follow the analyst operation, and then you are familiar with it yourself and then operate it yourself, investment and financial management is not a package of money, but senior can bring you more than 80% of the profit, know why rich people know how to find teachers to invest in financial management, it is not that they are not available, because they are smart, understand that people make good use of opportunities are equal.

    Nine years of experience in analysis and operation, I will send you a sixteen-word mantra: cash is the king, homeopathy is king, the point is the phase, and the stop loss is holy.

  10. Anonymous users2024-01-27

    The spread is the fee you have to pay to the company, and the fee varies from currency to currency.

  11. Anonymous users2024-01-26

    The spread is equivalent to the handling fee, which is simple.

  12. Anonymous users2024-01-25

    The spread is the difference between buying and selling: the same currency is always more expensive to buy than to sell, so it is the difference between buying and selling. It is also the transaction cost for the customer.

  13. Anonymous users2024-01-24

    When the foreign exchange interest rate floats, the size of the float is measured by the spread, and the last decimal place is recorded, such as: between to eight spreads; That's 233 spreads.

    The ones above are the aspects of spreads that are commonly used. For example, there will be a difference between the foreign exchange ** price and the selling price, and this difference is generally calculated in terms of the spread. Some of the fees for foreign exchange transactions are also calculated based on spreads, and some will also add commissions.

  14. Anonymous users2024-01-23

    The difference between the buying price and the selling price is the handling fee charged by those brokers, just like buying ** has to pay a handling fee, and buying a train ticket has to pay a handling fee. Otherwise, the brokerage will not be able to live, and you will not be able to invest in foreign exchange. (Generally, the buying price is higher than the selling price can be understood in this way, for example, the buyer and the seller reach a transaction through the intermediary, and the transaction is 1 million, and each pays the intermediary 10,000, so that the actual purchase price is 1.01 million, and the seller's actual income is 990,000, which causes the difference between the buying price and the selling price, that is, the spread).

  15. Anonymous users2024-01-22

    There is only one real point, that is, the core transaction. **The price and ask price are plus the spread. If it is higher or lower than this, it is called a spread. The market economy is fluid, and there will inevitably be spreads.

  16. Anonymous users2024-01-21

    Spread: The difference between the market bid price and the market ask price, which is the difference between the bid price and the ask price.

    In the foreign exchange market, foreign exchange spreads are divided into two categories: fixed spreads and floating spreads. The point value of the fixed spread is fixed, and the spread is the same when the market is thin and volatile, which is more suitable for novices who have just entered the foreign exchange market; The advantage of floating spreads is that the spreads are very small when there is no **, and the disadvantage is that the spreads will expand instantaneously when the fluctuations are large, which is difficult to grasp. For customers who like to speculate, it will increase the transaction fee.

  17. Anonymous users2024-01-20

    The spread is the difference between the buying and selling of the trading product you operate, and the spread is the spread. This one, as shown in the image below, is straightforward**:

    Nine years of experience in analysis and operation, very familiar with this market, you can ask me at any time if you have any questions, and finally send you a sixteen-word mantra: cash is the king, homeopathy is king, the point is the phase, and the stop loss is holy.

  18. Anonymous users2024-01-19

    "Spreads"The difference between the bid price and the ask price. For example, when USDJPY changes from USD to JPY, the spread is 100 pips. GBPUSD (GBPUSD) is changed from 200 pips (this conversion to USD corresponds to 1 pip, depending on how many significant figures there are after the decimal point).

    For spreads and some knowledge related to margin trading, you can refer to Wenchuan Gold and Silver, which will be useful to you.

  19. Anonymous users2024-01-18

    Spread: In investments with a leveraged trading ratio of more than 1:50, the current price of buying and selling should be higher or lower.

  20. Anonymous users2024-01-17

    A spread is a fee charged by a bank or dealer in the course of providing a service. The spread is determined by the dealer or bank. But it doesn't mean that the lower the spread, the better, you must understand that cheap is not good.

    The lower the spread, the worse the quality of the service provided, which is why there is a saying that taking advantage of a small advantage will suffer a big loss.

  21. Anonymous users2024-01-16

    The foreign exchange ** price and the ask price are quoted at the same time, and the difference between the ** price and the ask price is called the spread.

  22. Anonymous users2024-01-15

    The spread is the difference between the bid price and the ask price before the transaction is filled.

  23. Anonymous users2024-01-14

    The spread is simply the cost of the transaction, it = ask-bid.

  24. Anonymous users2024-01-13

    The market is made up of buyers and sellers, and if the buyer's asking price and the seller's asking price are equal or crossed, the transaction will be closed. Then the unfilled orders in the market must be a distance between buying and selling, and this minimum distance is called the spread.

    1. If you take ** as an example, then the spread is the difference between the selling price and the buying price. The same is true in Forex. So the spread should be automatically generated by the market and not fixed.

    However, due to the different nature of traders in the foreign exchange market and the different ways in which commissions are charged, a special form of fixed spreads has emerged.

    2. Spread = the lowest **ask for the seller - the highest **bid for the buyer.

  25. Anonymous users2024-01-12

    The spread between buying and selling. At the same time, there will be two foreign exchange spot transactions, one is to sell, and the other is to sell. The difference between two ** is called the spread. The bid-ask spread is different for each currency

  26. Anonymous users2024-01-11

    It is the difference between the bid price and the ask price, and the handling fee you pay to the platform, which will display a bid price and a ask price on the trading software.

    For example, the bid price displayed in Europe and the United States is now, and the ask price is.

    Then the spread in Europe and the United States is 3 pips.

    There are also 5 decimal places**, and the fourth place is a single digit.

  27. Anonymous users2024-01-10

    The difference between the price and the ask price, which is the cost of the transaction!

  28. Anonymous users2024-01-09

    It is the difference between the buying price and the selling price, and it is also the handling fee you pay to the platform.

  29. Anonymous users2024-01-08

    It is the difference between the bid and ask prices.

  30. Anonymous users2024-01-07

    The difference between the high and low bid prices.

  31. Anonymous users2024-01-06

    The spread is the difference between the ** price and the ask price.

  32. Anonymous users2024-01-05

    The spread is the smallest floating unit, and when the exchange rate changes, the difference in pips is the difference"Spreads"。

    1. At present, the word spread mostly appears in spot trading, that is, the difference between the bid price and the ask price. If you're doing spot or something, just take a look at the disk.

    2. There is also an understanding of the spread that is reflected in the currency, the difference between the buying price and the selling price of the currency, the difference between different currency pairs is different, generally between 2-3 points, the difference between the buying price and the selling price is the handling fee charged by those brokers, just like buying ** to pay the handling fee, buying a train ticket to pay the same handling fee. Otherwise, the brokerage will not be able to live, and it will not be able to invest in foreign exchange.

  33. Anonymous users2024-01-04

    Equivalent to fees and commissions.

  34. Anonymous users2024-01-03

    Let's do it on the outer plate. Forex is safe here.

  35. Anonymous users2024-01-02

    The spread is the difference between the bid price and the ask price, which is also the profit of the market maker.

    Taking London Gold as an example, let's say the spread of London Gold is that you are ready to make one lot (standard lot) of London Gold. Now**yes, but when you buy a long order (that is, buy), you will find that the **bought order becomes a spread in the middle, and there is also a short order (that is, selling). When you leave the market, the result is that the spread of London gold can be said to be the commission spread, which is to convert the commission charged for each transaction into a spread.

    These can also be said to be the handling fees charged by the platform.

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