The price of buying and selling is subject to change at any time, but the price of buying and selling is basically different. This is why traders are always making money. The purpose of traders is to buy high prices at low prices, so that the prices sold will always be Higher than the price of the purchase. There are many factors that can influence the spread of money, such as the demand for a currency, the amount of money on the market, the competitiveness of money, and the liquidity of money.
In general, the more active and larger the field provides the lower the spread, for example: Euro/US and GBP/US spreads are lower than other non-major currencies. . On the other hand, the smaller the field and the smaller the currency flow, the higher the spread, and the spread of the goods offered by the trader is an important factor affecting whether the customer chooses the trader.
Calculation of point value
Point value = transaction volume per unit * minimum jitter unit * (last currency / USD) The unit is US dollars.
According to the current quote, the first example:
For example, the point value of EURUSD=100000*0.0001*(USD/USD)=10 USD
USDCHF point value=100000*0.0001*(CHF/USD)=10/USD/CHF= 10/0.9245=10.82 USD
USDJPY point value=100000*0.01*(JPY/USD)=1000/USD/JPY=1000/81.6775=12.24 USD
EURGPB point value=100000*0.0001*(GPB/USD)= 10*1.61=16.1 US dollars
GPBCHF point value=100000*0.0001*(CHF/USD)=10/USD/CHF=10/0.9245=10.82 USD
It can be seen that the point value is only the same currency as the currency pair. related.
The minimum unit of the margin trading "hand"
When we understand what is the spread, what we need to understand is the unit "hand" that is closely related to the spread, the minimum unit of margin trading. In the case of a standard account, the trading unit provided by the broker on the general network is 1 lot (lot) and the volume is 100,000 base currency. In the case of a mini account, the deal in one hand is 1/10 of the standard account. For example, the actual transaction of USD/JPY is equivalent to actually buying (selling) 100,000 US dollars/day. If it is a lot of EUR/USD, the actual volume is equivalent to Euro/America worth 100,000 Euros.