"Spread": the smallest floating unit. When the exchange rate changes, the difference in point fluctuations is "spread". For example, when the USD / JPY (USDJPY) changes from 120.00 to 121.00, 121.00-120.00 = 1.00 yen, and the spread is 100 points. When GBP / USD (GBPUSD) is changed from 1.000 to 0.9800, the spread is 200 points (the conversion of 0.0001 USD corresponds to 1 point, which depends on the number of significant digits after the decimal point).
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"Points": In order to express the exchange rate accurately and conveniently, they are usually expressed in 5 digits. The unit with the smallest change is usually called a "point".
For example, the minimum unit of 120.00 USDJPY is 0.01 yen, or 0.01 yen is 1 point. The smallest unit of 0.9800 quoted in GBPUSD is 0.0001 USD, or 0.0001 USD is 1 point.
Spread of the quote: When trading foreign exchange, there is a difference between the bid price and the ask price. = 0.10 is called the spread of 10 points. When GBPJPY quotes 185.50 / 185.60, the spread is 10 points.
"Point value": The value converted into the currency every 1 point.
Point value calculation formula = contract unit * minimum change point unit
The point value of the main currency is as follows (standard account), there will be slight differences, and the point value of different platforms is different:
USDJPY 100.000 0.01 = 1000 yen / point
EURJPY 100.000 0.01 = 1000 yen / point
GBPJPY 100.000 0.01 = 1000 yen / point
CADJPY 100.000 0.01 = 1,000 yen / point
CHFJPY 100.000 0.01 = 1,000 yen / point
EURUSD 100.000 0.0001 = 10 USD / point
GBPUSD 100.000 0.0001 = 10 USD / point
USDCHF 100.000 0.0001 = 10 Swiss francs / point
Easy to understand:
Just
Brokers make profits through spreads.
Floating spread: It means that the fees charged by the dealer are changed according to the fluctuations of market conditions. Take the euro as an example, when the market is generally flat,
The gold spread is a spread between buying and selling,
Silver spread is the difference between buying and selling. When a silver merchant and a bank make a silver quote, the quoted price will be higher and the selling price will be lower. The middle difference is
Spread table
EUR / USD | EUR / USD | 3pips |
USD / JPY | USD / JPY | 3pips |
GBP / USD | GBP / USD | 4pips |
USD / CHF | USD / CHF | 4pips |
NZD / USD | NZD / USD | 4pips |
EUR / JPY | EUR / JPY | 4pips |
USD / CAD | USD / CAD | 4pips |
AUD / USD | AUD / USD | 4pips |
EUR / CHF | EUR / CHF | 4pips |
EUR / GBP | EUR / GBP | 4pips |
CAD / JPY | Canadian dollar / Japanese yen | 6pips |
AUD / JPY | AUD / JPY | 7pips |
GBP / JPY | GBP / JPY | 7pips |
CAD / CHF | CAD / CHF | 7pips |
NZD / USD | NZD / USD | 7pips |
AUD / CAD | AUD / CAD | 8pips |
EUR / CAD | EUR / CAD | 8pips |
CHF / JPY | CHF / JPY | 8pips |
GBP / AUD | GBP / AUD | 9pips |
GBP / CHF | GBP / CHF | 9pips |
EUR / AUD | EUR / AUD | 10pips |
NZD / JPY | NZD / JPY | 10pips |
GBP / CAD | GBP / CAD | 10pips |
AUD / CHF | AUD / CHF | 10pips |
