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Opisy GG, opiski GG, GG opisy, Opisy GG pionowe

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Many may wonder how brokers work without commissions The forex dealer is like a middleman Let's consider the case of a bread middleman He buys bread at a "wholesale" price and he sells it at a "retail" price So if one is a baker, he can ask the middleman how much he would buy his bread for Let's say the middleman quotes $1, so he's willing to pay $1 per loafOn the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for And he quotes the baker $125 That sounds reasonable, so you tell him to drop one off for youIn this example, the bread middleman didn't charge you a commission to either the baker or you, the customer Instead he bought at one price and sold at another He will let you buy from him at $125, and let you sell to him at $1 So every time the baker has bread to sell, he checks the middleman's sell price And when you want to buy a loaf of bread, you check the buy price In trading, this is known as the "bid" and "ask" The bid is the price you can sell at, and the ask is the price you can buy atConsidering forex broker commissions, the forex dealer will let the trader buy from him at 11971 and will let the trader sell to him at 11967 The difference 00004 is known as the spread And this spread is where the forex "middleman" makes his moneyIf the trader were to buy at 11971, then the instant the trader buys, he is "down" 00004, because if the trader wanted out of the trade, the best price he could sell it for is 11967 So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap Each minimum increment, 00001 is referred to as a "pip" So the spread in this example is 4 pips In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 00004) or 4 pips So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others In forex trading, the tighter the spread is, the better Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics Forex Broker Info is the sister site of Incorporating in Florida Web Article Source: http://EzineArticlescom/?expert=Eddie_Tobey ?>