All are made up of two prices :(Buyprice) and (Sellprice).
The Sellprice is the price at which a sell is sold and a buy is settled.
This is the best price you can sell base money at in the current market.
Remember, to buy currency, you need to use the “bid price” on the right of the quote board, and to sell currency, you need to use the “ask price” on the left.
The price difference between the two is “.
The bid price is higher than the ask price because you need to buy and sell currency from a broker.
If a broker provides services to you, you must charge a “service fee”.
Look at the following example suppose you have 1 euro/no fluctuation in your pants pocket.
You buy 1 euro and sell $1.3041, then sell 1 euro and buy $1.3038.
This time, you only have $1.3038 in your pants pocket, which is $0.0003 less than the $1.3041 you had before.
Where is the $0.0003?
Quite simply, you paid a $0.0003 service fee to the broker.
Do you understand how brokers make money?
The broker simply moves between the “ask price” and the “ask price” so that there is a price difference between the bid price and the ask price, and then sits and collects money.
This price difference is also called “point spread”.
