The handling fee for foreign exchange speculation is generally calculated according to the spread. For example, the spread between the pound and the dollar is 1, the handling fee is 10, and the two points are 20. The amount and spread of foreign exchange speculation fees are related to the trading volume.

For example:

The value of 1 point in foreign exchange transactions is 10 USD, which is fixed. Transaction cost is only related to the number of transactions.

1. If the agent doesn't add commission, you need to buy 1 lot cost =1USD * price difference of currency pair * 1 lot;

Take the spread between Europe and America (EUR/USD) as an example, the transaction cost of 1 lot =1USD * 2 points * 1 lot = USD 20;

2. The same is true for agency plus commission. For every 1 point commission, you will increase 1 point on the basis of the original spread of the currency pair;

Similarly, taking the price difference between Europe and America as an example, if the agent adds a commission of 2 points, the transaction cost of 1 lot is equal to 10 USD *(2+2)* 1 lot =40 USD.

Extended data

definition

broad sense

1. All assets in foreign currency owned by a country. It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts.

2. In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit.

narrow sense

Various payment methods expressed in foreign currency, which are generally accepted by all countries and can be used for international settlement of creditor's rights and debts. Must have three characteristics:

1, ability to pay (assets that must be expressed in foreign currency),

2. Availability (it must be a creditor's right that can be compensated abroad)

3. Convertibility (it must be a foreign currency asset that can be freely converted into other means of payment).

function

1. Promote the development of international economy and trade.

2. Adjust the surplus and deficiency of international funds.

3, is an important part of a country's international reserves, but also the main means of payment to pay off international debts.

References:

Baidu encyclopedia-foreign exchange