SafestMoney is a commercial bank that is involved in foreign exchange trade. In addition to conducting trade on behalf of its customers and itself, it provides trading channels for other participants. SafestMoney makes money by charging a _____ on the exchange, which is the difference between the buy and sell price for a currency.

Question

Quizplus · Accepted Answer

Banks and financial institutions involved in foreign exchange trading typically make money through the spread, which is the difference between the buy (bid) and sell (ask) price of a currency.

SafestMoney Is a Commercial Bank That Is Involved in Foreign