Most brokers charge no commissions. GFT Forex courtiers, like other foreign exchange brokers are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds and the fees renewal.
Many wonder comment May courtiers working committees. Forex is a broker dealer. We consider the case of pain of an intermediary. She bought a loaf of bread? Wholesale? price and sells it to one? detail? prices. Therefore, if one is a baker, you can ask how much it means to buy their bread. Saying that the price of $ 1 and is therefore willing to pay $ 1 for pain.
On the other side of the equation, that is, you just finished his last slice of bread, and you need a new pain. So call the local agent and ask how she was willing to sell (a customer) a loaf of bread. And quotes the baker $ 1.25. This seems reasonable, for what they tell you to leave at once for you.
In this example, the broker has no fresh bread or a commission of the bakery or the client. Instead he bought at a price and is sold to another. You can buy it at $ 1.25 and can be sold at $ 1. Therefore, each time the bread baked for the sale, through the controls the selling price. And when you want to buy a loaf of bread, check the purchase price.
In negotiation, it is known as the “supply” and “ask”. The offer is the price you can sell, and demand is the price you can buy.
Taking into account the foreign exchange broker commissions, the broker of exchange allows the trader to buy at 1.1971, and allow the trader to sell at 1.1967. The difference 0.0004 is known as the spread. And this difference is that change? Intermediate? made his money.
If the trader was to buy at 1.1971, then the operator of buy now, is it? In? 0.0004, as the operator, if one wants to trade the best price you could sell at 1.1967. While the distributor has the change in people from different professions, each one to buy or sell, you can make money in this price differential. Each minimum increment, 0.0001 is called? Pip?. Thus, the spread of this example is 4 points. In terms of dollars, a currency contract for $ 100,000, this operation will cost $ 40 ($ 100,000 x 0.0004) or 4 points. Thus, the operator is that some companies announce a difference of 3 points on some coins, usually up to five on the other. In currency trading, the difference is greater, the better.
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