How do Banks & Forex Firms Make Money Dealing FX? 💱

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How do banks/FX firms make money dealing FX? 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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little big big says:

I don't understand what is this guy saying. sounds like greek to me

John Anderson says:

Explained very well but why would an investor go to a bank or fx firm and pay that kind of spread, what are the benefits? Im not questioning the idea im genuinely interested to know, thanks

Tony Hughes says:

Very informative, thank you.

richard wharton says:

Great trading channel

GTBG Nation says:

Do you have a training platform sir, or just a kind youtuber?

Adi tironci says:

With that amount how many pips can this pair move in 5 seconds,,,
and if someone sell on the same time there are no movement

K.B SINN says:

Traders add no value to society .

bill nixon says:

Thanx again, Do you think you could do a vid on the London fix with an example like you have just shown?


Manoo42 says:

Worthless, what we actually wanted to know is the detail of how they make money out of trading FX i.e the only part of interest to traders…

Natural Trader says:

Thank you so much for the lesson!!! You’re videos are stellar!

Babatunde Omodara says:

Great work, thanks for a job well done.

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