Answer:
“Dealers” make money on currency exchanges by the difference between the “bid” price, or the price they offer to pay, and the “ask” price, or the price at which they offer to sell the currency.
Explanation:
A dealer is an individual who buys foreign exchange from one party and then sells it to another party. They earn a profit from the difference between the buying and selling price.
The bid price is the price at which an investor is willing to buy a certain currency and the ask price is the price at which an investor is willing to sell a particular currency at. The difference between the bid price and the ask price is called as the “spread”.
