Spreads
That is the difference between the purchase price and sale price in the currency exchanger, which was mentioned at the outset, as measured in points. In terms of the Forex market can be considered as a Commission, which establishes the broker for each transaction the client. Naturally, the less the commission, the better the customer to trade with a broker.
It is also important to mention that the spreads are both floating and fixed. Most brokers providing services in Forex, directly dependent on its counterpart, and just relay the prices to customers, who themselves are from the outside (of course, with its small surcharge). Counterparty may or may extend the spread and narrow, so the majority of brokers spreads just floating.
Alpha-FX working with contractors, Alfa-Bank, most of whom have spread gives that which we give to the client. In addition, a sufficiently large number of counterparties, which makes it possible to fix the spreads on highly favorable to the client level.
Fixed spreads are much more profitable to float. First, the client always knows exactly what he will pay a commission when you open a transaction and when it is closed, and secondly, safe from unpleasant situations that might occur with a sudden expansion of the spread. In the example of the exchanger is easy to explain:
Today's client in the exchanger bought dollars at the rate 30/31 (that is, for 31 rubles), and the next day, coming to the exchanger, finds the course 21/41. Despite the seemingly high cost of the dollar, to sell their dollars exchanger client can only 21 rubles, that is losing on every dollar to 10 rubles. Much less would be an unpleasant situation with a fixed spread, rather than an extended 20 times.
However, in areas measured by the nominal value of the spread. In order to understand the real value of it, it is necessary to take into account the volume of the quotation and the opened position at which the position is opened:
For example, the
Fixed spread on EURUSD is 1 point. The client opens a position in a lot. How much did he pay for the position opening?
The cost of the item for return quotations are calculated using the formula V * 0,0001, where V - volume position. In our case, the volume of items 100 000, by multiplying by 0.0001, we get $ 10.
Most customers have questions about additional commissions that are subject to work on Forex. In addition to the spread, is taken as a swap - a sort of commission for the transfer of positions through the night.
