Give a very simple example: someone wants to sell a house, the seller provides the information of the house to the intermediary, and the intermediary publishes the information of selling the house; Property buyers want to buy a house, but also through the intermediary to get the news that there is a house to buy. At the same time, buyers and sellers reach commercial transactions through intermediaries. The transaction is made at 2 million yuan, but each transaction needs to pay the intermediary 6.5438+0 million yuan. This is equivalent to the buyer spending 20 10000 yuan to buy a house, while the seller's actual income from selling the house is 199000 yuan, so there is a price difference between the buyer and the seller, which is the so-called price difference.
The so-called trading spread is the commission drawn by foreign exchange dealers, brokers or market makers or both.
Let's give a simple example. Suppose the spread drawn by your foreign exchange dealer is a point, and the current price of euro/dollar in the international money market is. /,then when investors buy the currency at this price, the actual buying price is. Not the selling price of 1.3880 in the international money market. The difference between the two is the price difference.
On the foreign exchange platform, the spread affects the investment cost of investors. The smaller the difference between the price of buying foreign exchange and the price of selling foreign exchange, the lower the investment cost of foreign exchange investors. In the long run, short-term investors are greatly affected by spreads, while long-term investors are less affected by spreads.