What do you mean by foreign exchange spread and slip point?
There are some differences and slippage in foreign exchange trading, which have the most direct relationship with the income of our foreign exchange trading. So, what do you mean by foreign exchange spread and sliding point?
What does the foreign exchange spread mean?
Foreign exchange spread is the difference between the buying price and the selling price when we make a foreign exchange transaction. When we conduct foreign exchange transactions, we will find that there are two prices displayed on each currency pair on the. These two prices are the buying price and the selling price, and the difference between them is the point spread. In fact, the foreign exchange point spread is the service charge for our foreign exchange transactions, which is directly related to the profitability of our transactions.
What do you mean by foreign exchange sliding point?
Foreign exchange sliding point refers to the phenomenon that the trading point is different from the point specified by the investor in the process of making orders. For example, the stop loss point we set in the transaction is 110.25, while the real stop loss point is 110.15, which means that there is a 10 point sliding point in this transaction. There are two main reasons for the occurrence of foreign exchange slippage. One is the intentional slippage of dealers; the other is that the service fails to keep up with the fluctuation of exchange rate.
The difference between foreign exchange spread and sliding point
Although both foreign exchange spread and sliding point may cause trading losses, the difference between them is very obvious.
Foreign exchange point difference is the service charge, which is collected by the system. The foreign exchange slide is due to the wrong position. The foreign exchange spread is fixed to be negative, while the foreign exchange slip point is positive or negative. There will be no compensation for the foreign exchange spread, and the foreign exchange sliding point can apply to the foreign exchange platform for compensation.