For convenience, these currencies are written in pairs, such as AUD/USD (AUD/USD: AUD is "base currency" and USD is called "relative currency". )
Fee spread: convert the fee charged for each transaction into the spread. No matter what currency is traded, the handling fee will be converted into the spread of that currency.
Extended data:
The role of communication
Brokers profit from spreads. The bigger the spread, the higher the seller's price and the lower the buyer's price. Therefore, you need to pay more when you buy, and get less when you sell, so it is difficult to make a profit.
Brokers generally don't earn all the difference, especially when they need to hedge their clients' positions. The spread is the compensation for the risks that market bears must bear when they execute customer transactions after crossing their own risk exposure (possibly at different prices).
At present, some companies in the market, such as Fuhui Global Jinhui, offer floating spreads. Floating spread refers to the spread charged by a dealer company when trading with customers, which will fluctuate with the severity of exchange rate fluctuations or the size of market trading volume.
The price difference will seriously affect the return of trading strategy. More than you think. As traders, the pursuit is to buy at a low price and sell at a high price. A high spread means buying at a high price and selling at a low price. The spread of half a point doesn't sound like much, but this spread can often make the originally profitable trading strategy unprofitable.
At present, the price difference between interbank transactions is 2-3 points; Banks (or dealers) vary greatly, even several times, according to their own situation, which is mainly determined by the differences in the development of foreign exchange business and transaction processes in different regions. At present, the quotation spread of foreign regular margin dealers is around 5: 00, Hong Kong is around 6-8: 00, and domestic banks are around 5-40: 00 (the trading volume will be given a little discount).
Generally speaking, the more participants, the greater the trading volume, the smaller the spread (for example, on the platform of some overseas regular margin traders, the spread between the euro and the US dollar is only 3-4 points), while the greater the periodic volatility, the greater the spread (for example, the greater the periodic volatility, the spread of margin trading is generally around 9 o'clock).
Baidu encyclopedia-foreign exchange spread