【学习笔记】International Finance 国际金融论研究 学习笔记-20

Part I

Basics ofInternational Finance --20

Ch5 --4

TheMarket for Foreign Exchange

The Bid-Ask Spread

1.    The bid price is the price a dealer is willing to pay youfor something.

2.    The ask price is the amount a dealer wants you to pay forsomething.

3.    It doesn’t matter if we’re talking used cars or usedcurrencies: the bid-ask spread is the difference between the bid and askprices.

Spot FX Trading

1.    In the interbank market, the standard size trade is aboutU.S. $10 million.

2.    A bank trading room is a noisy, active place.

3.     Thestakes are high.