The price differential between buying and sellingSpread
Which is the main source of income for brokerage firms.Do you ever go to a money exchange shops to replace the local currency and get a dollar, for example?Suppose that you have the SR and I wanted to buy dollars from a money changers something I happen?When you go to the money changers and ask about the price of the dollar against the riyal will ask
: Sell or buy?
That is, it means to know: Do you have dollars and want to sell it and get your Real or Real and want to buy the dollar?
If you asked him about the case will tell you, for example:Price of the dollar against the Saudi riyal now: Sale: 3.65 Buy: 3.50What does that mean?I mean, if you have Real and you want to buy dollars Vsepeek dollar that you pay for3.65 riyals.But if you had a dollar and you want to buy Real will get for every dollar the3.50 riyals.Any Sepeek dollar at a rate3.65 riyals to the dollar.The dollar will buy at3.50 obtained by the Real against the dollar.May ask why there is a difference in price between buying and selling?This is because this difference is the interest received by the ATM.Why should provide you with the dollar and the riyal you take that did not benefit from it?Will benefit from this when the dollar buys from others at3.50 Real and sell it to others at 3.65 riyals.Benefit if it is: 3.56 - 3.50 = 0.15 riyals to the dollar sells for, and what he buys and sells large quantities of many people this will become a large sum simple difference.This is called the difference between the price of buying and selling of a currencyspread.The currency trading brokerage firms will deal with you as well to deal ATM._ek Currency at one price and you buy at a lower price a bit and this difference is the profit.So when you trade currencies, you will find that the prices of any currency pairs come: The price of the sale price and to buy.
For example,:Will be the price of the euro against the dollar EUR / USD = .9500-9505So if you have euros and you want to sell it and buy- You get - the dollar, Vschtre from you and pay you $ .9500.But if you want to buy Euro and sell- Pay - the dollar, you have to pay for every euro $ 0.9505.A difference$ 0.0005 will be the margin of profit.
Called the purchase price of the currencyASK
Called the price you sell the currencyBID
The price will be similar to the view thus:
BIDASK
EUR / USD.9800 .9805GBP / USD1.5235 1.5240USD / JPY123.25 123.30USD / CHF1.4828 1.4833Table(1)What does this mean?Price, as you know: Is the amount to be paid from the second currency for one unit of base currency.ASK:It means asking you to pay $ 0.9805 for one euro, ie it _ek euro at $ 0.9805
BID:Means that it offers you the amount of $ .9800 to get you to one euro, that is, you buy the euro at $ 0.9800.
IfASK:Is the price at which you buy the base currency and sell - pay - the second currency.
BID:Is the price at which you sell the base currency and buy - you get - the second currency.
Notes here that the difference between the sale price and purchase price in each currency is5 points.This means that: SPREAD = 5 POINTS
If we assume that you bought1000 euros depending on the rates listed in the table (1) will pay $ 980.5 InterviewIf you have to sell the1000 euros this immediately, you will not sell the same price you bought it, but you will get an interview on the $ 980 and had thus lost $ 0.5.This difference is exactly the benefit of the brokerage company as interest teller.Currency prices are constantly changing up and down, but there always remains a five-point difference between the purchase price and the selling price, And this difference is a fixed profit for the brokerage firm.Take the examples:Example1
Suppose you looked at the panel prices in the workstation and found them as follows:BID ASKEUR / USD .9800 .9805But you expect that the price of the euro will rise60 points will arrive soon to the EUR / USD = .9860What do you do?The answer:We expect the euro to rise if we will have to buy euros to sell it later at a high rate.Will be the price at which it will buy the euro is now.9805 Because the purchase price.AsASK is the price at which it will buy the base currency and sell it the second currency, and the base currency is the euro against the dollar always.
If you will buy1 lot at 0.9805 eurosIf you are sincere your expectations and the price of the euro might consider to panel prices in the workstation after a period of time Vtgd euro as follows:BID ASKEUR / USD .9870 .9875You now have the euro and want to sell at a higher price than the purchase price when you look at the price above you will find that the sale price(Ie the price at which you sell it) is .9870ForBID is the price you sell it you buy the base currency and the second currency, and you have a euro and you want to sell, and the euro is always the base currency.
If you want to buy euro instead of selling it will buy at.9875 For the price at which it buys the base currency.If you sell the1 lot EUR that you have at .9870 to order the company to sell when the price reaches this limit.I have purchased1 lot at 0.9805 and sold at 0.9870 and thus achieved a profit of 65 points = profit.That is, you won$ 650 if you are trading in a regular account or $ 65 if you are trading in a mini account.Example2
Suppose you looked at the panel found the prices and the yen as follows:BID ASKUSD / JPY 123.50 123.55If you want to buy the yen will buy at any price now?The answer:Remember thatASK: is the price at which you buy the base currency and sell the second currency.
And that the BID: is the price at which you sell the base currency and buy the second currency.
And always knew that the dollar is the base currency against the yen and franc.When you want to purchase Yen(Second currency) and selling the USD (base currency), the purchase price will be the bottom of the BID.The purchase price will be the123.50.Are you the cause of some confusion in understanding?!!
There is nothing wrong in principle you can take the following general rule:General ruleIf you want to buy the euro or the pound take rateASK.
If you want to sell the euro or the pound take rateBID.
On the contrary ..
If you want to buy the yen or the franc price takesBID.
If you want to sell the yen or the franc price takesASK.Elastosis and some things will become very clear for you.
Take more examples:Example3:
Suppose that the price of the franc on the panel price as follows:BID ASKUSD / CHF 1.4825 1.4830They expected that the price of the franc will rise50 points in the future, what do you do?
The answer:We expect that the price of the franc will rise against the dollar means that the franc rising market, If the franc will buy the current price in the hope of selling it later at a higher price.When you buy at the franc SnstraehBID because it is the price you sell the base currency and buy the second currency, and the second currency is the Franc.Will buy at the franc1.4825.Example4:
Suppose that the price of the pound against the dollar now as follows:BID ASKGBP / USD 1.5235 1.5240They expected that the price of the pound will fall80 points, what do you do?
The answer:We expect that the price of the pound will fall against the dollar means that the Fairy bearish market, If we will sell the pound at the current rate in the hope that we buy it later at a lower price and keep the difference as profit.When we want to sell the pound now at SenbaahBID because it is the price at which we will sell the base currency is the pound, we will sell the pound at 1.5235.Example5:
Suppose that the price of the yen against the dollar on the plate prices Malata:BID ASKUSD / JPY 122.08 122.13They expected that the price of the yen will fall, What do you do?
The answer:We expect that the price of the yen would fall against the dollar, Ie that the market for yen downside.If we will sell the yen.When we want to sell the yen rate SenbaahASK for that price you buy the base currency and sell the second currency, and the second currency is the yen.We will sell the yen rate122.13.As we have stated that in all cases and no matter how prices have changed currency there is a difference between a fixed selling price and the purchase price which is calledSPREAD.Companies differ among themselves determine theSPREAD some of which are determined by 5 points, including 4-points, including 8 points.In any case, the vast majority of brokerage firms have theSPREAD has a = 5 points.Anjad and justified to deal with the company being theSPREAD has more than that.I also saw the price difference between buying and selling is the basis of income brokerage firms in the currency market, although I have found some difficulty in understanding what we explained the difference between the sale price and purchase price, especially since there is a difference between buying and selling currencies direct and indirect Vlatqlq, with some of the training session These concepts will become very clear for you
Which is the main source of income for brokerage firms.Do you ever go to a money exchange shops to replace the local currency and get a dollar, for example?Suppose that you have the SR and I wanted to buy dollars from a money changers something I happen?When you go to the money changers and ask about the price of the dollar against the riyal will ask
: Sell or buy?
That is, it means to know: Do you have dollars and want to sell it and get your Real or Real and want to buy the dollar?
If you asked him about the case will tell you, for example:Price of the dollar against the Saudi riyal now: Sale: 3.65 Buy: 3.50What does that mean?I mean, if you have Real and you want to buy dollars Vsepeek dollar that you pay for3.65 riyals.But if you had a dollar and you want to buy Real will get for every dollar the3.50 riyals.Any Sepeek dollar at a rate3.65 riyals to the dollar.The dollar will buy at3.50 obtained by the Real against the dollar.May ask why there is a difference in price between buying and selling?This is because this difference is the interest received by the ATM.Why should provide you with the dollar and the riyal you take that did not benefit from it?Will benefit from this when the dollar buys from others at3.50 Real and sell it to others at 3.65 riyals.Benefit if it is: 3.56 - 3.50 = 0.15 riyals to the dollar sells for, and what he buys and sells large quantities of many people this will become a large sum simple difference.This is called the difference between the price of buying and selling of a currencyspread.The currency trading brokerage firms will deal with you as well to deal ATM._ek Currency at one price and you buy at a lower price a bit and this difference is the profit.So when you trade currencies, you will find that the prices of any currency pairs come: The price of the sale price and to buy.
For example,:Will be the price of the euro against the dollar EUR / USD = .9500-9505So if you have euros and you want to sell it and buy- You get - the dollar, Vschtre from you and pay you $ .9500.But if you want to buy Euro and sell- Pay - the dollar, you have to pay for every euro $ 0.9505.A difference$ 0.0005 will be the margin of profit.
Called the purchase price of the currencyASK
Called the price you sell the currencyBID
The price will be similar to the view thus:
BIDASK
EUR / USD.9800 .9805GBP / USD1.5235 1.5240USD / JPY123.25 123.30USD / CHF1.4828 1.4833Table(1)What does this mean?Price, as you know: Is the amount to be paid from the second currency for one unit of base currency.ASK:It means asking you to pay $ 0.9805 for one euro, ie it _ek euro at $ 0.9805
BID:Means that it offers you the amount of $ .9800 to get you to one euro, that is, you buy the euro at $ 0.9800.
IfASK:Is the price at which you buy the base currency and sell - pay - the second currency.
BID:Is the price at which you sell the base currency and buy - you get - the second currency.
Notes here that the difference between the sale price and purchase price in each currency is5 points.This means that: SPREAD = 5 POINTS
If we assume that you bought1000 euros depending on the rates listed in the table (1) will pay $ 980.5 InterviewIf you have to sell the1000 euros this immediately, you will not sell the same price you bought it, but you will get an interview on the $ 980 and had thus lost $ 0.5.This difference is exactly the benefit of the brokerage company as interest teller.Currency prices are constantly changing up and down, but there always remains a five-point difference between the purchase price and the selling price, And this difference is a fixed profit for the brokerage firm.Take the examples:Example1
Suppose you looked at the panel prices in the workstation and found them as follows:BID ASKEUR / USD .9800 .9805But you expect that the price of the euro will rise60 points will arrive soon to the EUR / USD = .9860What do you do?The answer:We expect the euro to rise if we will have to buy euros to sell it later at a high rate.Will be the price at which it will buy the euro is now.9805 Because the purchase price.AsASK is the price at which it will buy the base currency and sell it the second currency, and the base currency is the euro against the dollar always.
If you will buy1 lot at 0.9805 eurosIf you are sincere your expectations and the price of the euro might consider to panel prices in the workstation after a period of time Vtgd euro as follows:BID ASKEUR / USD .9870 .9875You now have the euro and want to sell at a higher price than the purchase price when you look at the price above you will find that the sale price(Ie the price at which you sell it) is .9870ForBID is the price you sell it you buy the base currency and the second currency, and you have a euro and you want to sell, and the euro is always the base currency.
If you want to buy euro instead of selling it will buy at.9875 For the price at which it buys the base currency.If you sell the1 lot EUR that you have at .9870 to order the company to sell when the price reaches this limit.I have purchased1 lot at 0.9805 and sold at 0.9870 and thus achieved a profit of 65 points = profit.That is, you won$ 650 if you are trading in a regular account or $ 65 if you are trading in a mini account.Example2
Suppose you looked at the panel found the prices and the yen as follows:BID ASKUSD / JPY 123.50 123.55If you want to buy the yen will buy at any price now?The answer:Remember thatASK: is the price at which you buy the base currency and sell the second currency.
And that the BID: is the price at which you sell the base currency and buy the second currency.
And always knew that the dollar is the base currency against the yen and franc.When you want to purchase Yen(Second currency) and selling the USD (base currency), the purchase price will be the bottom of the BID.The purchase price will be the123.50.Are you the cause of some confusion in understanding?!!
There is nothing wrong in principle you can take the following general rule:General ruleIf you want to buy the euro or the pound take rateASK.
If you want to sell the euro or the pound take rateBID.
On the contrary ..
If you want to buy the yen or the franc price takesBID.
If you want to sell the yen or the franc price takesASK.Elastosis and some things will become very clear for you.
Take more examples:Example3:
Suppose that the price of the franc on the panel price as follows:BID ASKUSD / CHF 1.4825 1.4830They expected that the price of the franc will rise50 points in the future, what do you do?
The answer:We expect that the price of the franc will rise against the dollar means that the franc rising market, If the franc will buy the current price in the hope of selling it later at a higher price.When you buy at the franc SnstraehBID because it is the price you sell the base currency and buy the second currency, and the second currency is the Franc.Will buy at the franc1.4825.Example4:
Suppose that the price of the pound against the dollar now as follows:BID ASKGBP / USD 1.5235 1.5240They expected that the price of the pound will fall80 points, what do you do?
The answer:We expect that the price of the pound will fall against the dollar means that the Fairy bearish market, If we will sell the pound at the current rate in the hope that we buy it later at a lower price and keep the difference as profit.When we want to sell the pound now at SenbaahBID because it is the price at which we will sell the base currency is the pound, we will sell the pound at 1.5235.Example5:
Suppose that the price of the yen against the dollar on the plate prices Malata:BID ASKUSD / JPY 122.08 122.13They expected that the price of the yen will fall, What do you do?
The answer:We expect that the price of the yen would fall against the dollar, Ie that the market for yen downside.If we will sell the yen.When we want to sell the yen rate SenbaahASK for that price you buy the base currency and sell the second currency, and the second currency is the yen.We will sell the yen rate122.13.As we have stated that in all cases and no matter how prices have changed currency there is a difference between a fixed selling price and the purchase price which is calledSPREAD.Companies differ among themselves determine theSPREAD some of which are determined by 5 points, including 4-points, including 8 points.In any case, the vast majority of brokerage firms have theSPREAD has a = 5 points.Anjad and justified to deal with the company being theSPREAD has more than that.I also saw the price difference between buying and selling is the basis of income brokerage firms in the currency market, although I have found some difficulty in understanding what we explained the difference between the sale price and purchase price, especially since there is a difference between buying and selling currencies direct and indirect Vlatqlq, with some of the training session These concepts will become very clear for you
0 comments:
Post a Comment