How do Banks & Forex Firms Make Money Dealing FX?
How do banks/FX firms make money dealing FX? http://www.financial-spread-be....tting.com/course/tec PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! And actually the question should be how do banks and bureaus make big money from exchange rates? How do banks earn profit on spot trading in the forex market? How do banks trade in forex market? Banks do make big money from exchange rates. A dealer is someone who is in the middle of order flow and this is a different game. This is how these banks and fx firms make their money as opposed to speculation.
How do banks earn profit on spot trading in the forex market?
Let's say USD/JPY is trading at 113. Say someone makes an order for 1 billion dollars worth of Yen. In the interbank market we've got a bid price of 112.999 and an ask price of 113.001. (i.e. really tight). But the bank might quote you 113.25. This is the dealer's cut. The FX dealer also has some room for speculation as more client orders come in.
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