What Is a Retail Broker
Company?
Retail broker
companies which acts as mediator
or middleman between huge investment banks and
Small investors these companies lend small investors big amounts of money to
help them trade at forex market.
As small investors we
need Retail Broker companies for two reasons
(1)
The great value of
contract. Every contract can reach to 1000000 Banknote, and this is a large
amount, also the investor needs to buy a lot of contracts
(2)
Small trading of this
market. For example one dollar needs to move 100 pips to increase only 1 cent.
How can retail broker
companies make profit?
Retail broker
companies can make profit through the price difference
between ask and bid.
What are ask, bid and
spread?
.Ask: The ask price is
the price at which buying processes are done.
Bid: The bid price is
the price at which selling processes are done.
