What does it mean to spread out in the currency exchange market?

Foreign exchange brokers will offer you two different pricing options; put the priceand price question .

Pricing is the price at which you can SELL a base price.

The question price is the price at which you can buy the base currency.

The difference between these differences is called the cost of the spread .

It is also called the query price query .

The cost structure is how low-incomebrokers make their money.

The cost of laying is the reward for the work of providing "integrated now" .

This is why the terms "combination price" and "price setting" can be used interchangeably.

Instead of specifying the price of a trade-off, the price is constructed as the purchase price of the two currencies to be traded.

From a commercial point of view, that makes sense. The service provider is therefore financially secure somehow.

They make more money by buying and selling money for you than they buy it .

We make money by buying money from you at a price less than what they would get if they sold it .

The difference is called the Cost Price .

Just like you are trying to sell your iPhone at an iPhone auction store. (A smart phone with two cameras on the back? Funny!)

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In order to make a profit, you need to buy your iPhone at a lower price than what can be sold .

If the iPhone is going to be sold for $ 500, because if you want to make a profit anyway, then the last thing you can buy for it is $ 499.

This difference of $ 1 is called the spread.

Therefore, if the dealer says "no interest", then it is a delusion, because even if there is no separate interest payment, there is still no interest.

Exactly in the pricing / price query!

How is the price of a bed measured in a foreign exchange market?

The price of a spread is usually measured in pips, which is the smallest unit by moving the price of a series of currencies.

in most two currency pairs, one pip equals 0.0001

In the example of two pip currencies spread EUR / USD would be 1.1051 / 1.1053.

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The two currencies include the Japanese yen which is priced at 2 pixels (unless there are square pips, it would be 3 pips).

For example, Usd / JPY would be 110.00 / 110.04. this price indicates a 4 pips chart .

What kind of layouts are in the currency exchange market?

The type of scenery you will see in the trading software depends on the currency exchange broker and how they make money.

There are two types of beds:

Kafaffe

Convertible (called "straw maker")

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Typically, a spreadsheet is the advice of brokers working in the form of a market planner or "contract table" as a reference but it is also a flexible platform, advice from brokers who do not work in a table contract system. ".

  What is meant by a stable spread in the exchange market?

The firm is still intact, unaffected by market conditions at any time. In other words, even if the market conditions change like Kanye's behavior or silence like a rat, nothing will affect the landscape. She is still the same.

It is a well-established platform, advised by brokers working as market planners or a "table deal" system.

With the use of table deals, the broker buys large positions from their suppliers and then displays these positions as small to small traders.

This means that the broker acts as a trading partner.

The fact that there is a contract table, it allows the broker to point out the intentions of the spread because they can control the prices they show to their customers.

What are the benefits of trading with a solid platform?

Fixed layouts do not require a lot of capital, so trading and laying out means cheaper options for traders who do not have a lot of money to start trading with.

Trade-offs and fixed-price exchanges are predictable.

Since the landscape is unchanged, you can always be sure of what you can expect to pay when you open a business.

What are the disadvantages of this trade-off?

Commodity prices can be redeemed at any time if traded with a fixed price, since prices come from a single source (your dealer).

When we say always we mean almost always like Instagram releasing messages from Kardashian sisters!

There are times when the currency exchange market is unpredictable and changes rapidly. Since the platform is fixed, the dealer will not be able to expand the platform without adapting to the current market conditions.

So if you try to enter a trade at a fixed price, the broker will "block" the trade and ask you to agree to a new price. You will be charged a new price.

The price tag will appear on your trading software to let you know that the price has changed and then ask you if you are willing to accept that price. It is almost always the worst price ever offered.

Sliding is also a problem. As the price goes up, the broker may not be able to maintain a stable position and the price you end up with after the transaction will be completely different from the entry price you intend to make.

It looks like a sack that encloses with a drawstring.

What are the volatile conditions in the foreign exchange market?

As the name suggests, changing layouts are changing all the time.

With variable layouts, the difference between the pricing and the asking price of the two currency pairs is constantly changing.

Flexible tables, unconventional brokers at their desks.

Non-negotiable brokers at the table get the price of their double price list from multiple trading providers and then deliver this price to the trader without having to sign a contract table.

This means they have no control over the layouts. And the trends will expand or shrinkdepending on the supply and demand of the economy and the overall uncertainty of the market.

It is well known that the horizon widens during the release of economic news and in some cases when the market share decreases during the holidays and when the demonic revelation begins.

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For example, you might want to buy EUR / USD with a spread pips, just click the buy button, then the unemployment report is released in the US and immediately the spread expands to 20 pips!

Oh, and then the landscape could widen when Trump talks about the US dollar during his presidency.

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What are the benefits of trading with flexible layouts?

Flexible carpets end up costing recurring. This is because differences in landscape conditions are changing prices due to market conditions.

(But the fact that you will not be reimbursed does not mean that you will not get a slide).

The stock market fluctuates with volatile currencies and provides a fair price, especially when you consider that having access to pricing from a large number of suppliers often means better prices due to competition.

What Are The Benefits Of Doing Business With Flexible Layers?

Changing tables are not suitable for a change. Extensive layouts can consume all the benefits of a small change.

Changing mats are bad for new traders. Spreadsheets can expand so much that what looks like a profit can be turned into a non-profit at the blink of an eye.

Fixed layouts on Flexible Layers: Which is better?

The question of which options are best between the fixed and flexible layouts depends on the needs of the entrepreneur.

There are marketers who think that using fixed layouts is better than using flexible lawn dealers.

In general, small business owners and those who do not always trade are likely to benefit from the price of fixed bases.

Big business accountants who trade all the time when the market is at its peak (when the markets are moving).

Traders who know how to trade fast and need to avoid repetitive pricing, will want to trade with flexible layouts.

Layer Pricing and Billing.

Now that you know what a spreadsheet is, and the difference between two sheets, you need to know one more thing ……………

Bedding relationship and transaction costs.

It is easy to calculate while you only need two things:

Value in each pip

The amount of money you trade

See example….

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At the previous price, you can buy EURUSD at 1.35640 and then sell at EURUSD 1.35626.

This means that if you buy EURUSD and then during the close, it will cause you to lose 1.4 pips.

To completely find out the price, you need to multiply the price of each pip by the number of lots you are trading.

So if you are trading small lots (10,000 shares), the value of each pip is $ 1, so the transaction cost will be $ 1.40 to open this trade.

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The price of the pip is straightforward. This means that you will need to double the price of each pip and the number of lots you trade.

If you increase the size of your position, the value of your transaction, which is seen on the horizon will also go up.

For example, if the stock is 1.4 pips and you are trading five small lots, your transaction price will be $ 7.00

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