In the spot market, the ________ is the difference between the bid and offer rates and is the trader's profit margin.

Question

Quizplus · Accepted Answer

The spread is the difference between the bid and offer rates in the spot market, and it represents the trader's profit margin. The bid is the price at which a buyer is willing to purchase a currency, while the offer or ask is the price at which a seller is willing to sell it. The cross rate refers to the exchange rate between two currencies that are not the official currencies of the country in which the quote is given. Therefore, the best choice is D, the spread.

In the Spot Market, the ________ Is the Difference Between