Spread so as we discussed us brought to those above the bid price and you will always pay more to buy one unit of base currency, then you ...
That means 1.8873-1.8866 and that means 0.000 seven so that means less than one Australian cents that are .07 over this transit and this is instrumentalist because the currency pair is British colonist Randall is so Australian dollar is the quoted currency.
Remember, are examples of apples so British pound here is like the Apple and a strident dollar is a currency that is being valued in so in this instance, the spread is .07, all in a strident sense, which is very low in our kind of understanding of the world that when we go to the exchange booth. This spread is usually at least a couple of cents maybe maybe a dollar or so on certain currency pairs.
But on the Forex market spreads very low and this is called very tight spreads and that's oh that's right because when you do very large transactions as banks do, or when you've got hundreds and thousands of purchased participants.
Participating brokers have they make up this some money from the volume and the quantity of transaction.
Some simply put, the brokers actually earned this money order on the banks and brokers.
The kind of share the spread and this is your cost of conducting a transaction on the Forex market.
So if you have a 12 participate and open a trade you would always pay the spread because you would buy at the asking price.
For instance, and then when you close the order you close it at the bid price so your inheritance.
He always paid the spread in any transaction that's your cost of participating in the market and whether or not you make money that's that's completely you're up to you and that unit in a good broker that has nothing to do with them.
They make money off of spreads and other things like commissions and swaps which will talk about later
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