What is the difference between the buy and sell rates?
The difference between the buy and sell rates – known as the pip spread, is the amount you pay to the dealer for laying and administering your trade. e.g. If the quoted prices for the Euro/USD are: buy 1.1796 and sell 1.1799 – there is a spread of 3 pips or 3 one hundreds of a cent. Thus you pay 3 hundreds of a cent for every Euro or Dollar you buy or sell in this currency pairing. For each 10k you buy or sell, you pay the dealer $3 for laying and administering the transaction. Note: for many of the cross currencies the pip spread may rise to 10 or more.
