In addition, you need to remember the definition of base point. A spread of 3 means a change of 3 basis points. It is generally believed in the industry that all currency pairs can be divided into two types, one is a currency pair with Japanese yen and the other is a currency pair without Japanese yen. If a currency pair carries Japanese yen, such as GBPJPY, the change is 0.0 1, which is a base point. The latter, such as the euro against the US dollar, changed by 0.000 1, which is a basis point.
Take Euro/USD as an example: the buying price 1.4390 and the selling price 1.4393, and the difference between the buying price and the selling price is three points. If you want to buy the euro at this time, you can make a deal with 1.4393, and the profit and loss show three points, that is, the loss value is -30 USD (3*$ 10=$30).
After long-term trading, the spread has a great influence on the overall profit and loss of short-term investors, but has a little influence on medium and long-term investors.