In the context of foreign exchange, the difference between the buy and sell price for a currency is referred to as a _____.
A) spot rate
B) dividend
C) valence
D) spread

Question

Quizplus · Accepted Answer

The difference between the buy and sell price for a currency in foreign exchange is referred to as the "spread." This represents the transaction cost to the trader or investor and is how brokers make a profit without charging commission fees.

In the Context of Foreign Exchange, the Difference Between the Buy