is essentially the difference between the offer price.
Because traders tend to trade one currency for another, currencies are often quoted against the price of another currency.
For convenience, these currencies are written as pairs, e.g. /(AUD/USD – where AUD is the “base currency” and USD is the “relative currency”).
Using the spread generated by trading online to make a profit, you will find that online foreign exchange dealers buy slightly differently from real foreign exchange dealers, who charge you for their services.
The buying and selling prices change over time, but the buying and selling prices are basically not the same. That’s why dealers always make money. The dealer’s purpose is to buy low and sell high, so that the selling price is always higher than the buying price.
There are many factors that can affect the currency spread, such as the market demand for a currency, the supply of money in the market, the competitiveness of money and the liquidity of money.
In GENERAL, MORE ACTIVE AND LARGER MARKETS OFFER LOWER SPREADS, FOR EXAMPLE, / USD AND/USD SPREADS ARE LOWER THAN OTHER NON-MAJOR CURRENCIES.
On the other hand, the smaller the market and the smaller the circulation of currency, the larger the point spread will be. The point spread of commodities offered by dealers is an important factor affecting whether customers choose this dealer.
Calculation of point value Point value = Trading volume per unit * Minimum runout unit *(the latter currency /USD) unit is the US dollar.
Examples according to the current quotation:
For example, point value =100000*0.0001*(USD/USD)= $10 point value of USDCHF =100000*0.0001*(CHF/USD)=10/USD/CHF=10/0.9245= point value of USD10.82 =100000*0.01*(JPY/US
D)=1000/USD/JPY=1000/81.6775=12.24 USD point value of EURGPB =100000*0.0001*(GPB/USD)=10*1.61=16.1 USD point value of GPBCHF =100000*0.0001*(CHF/USD)=10
/USD/CHF=10/0.9245=10.82 USD Thus, the point value is only related to the latter currency of the currency pair.
