What Is Spread Betting?
"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).
- [din chà]
- "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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|