The "price difference" is easy to understand: it is the difference between the purchase price and the selling price, and it is also the handling fee paid to the platform. A purchase price and a selling price will be displayed on the trading software. For example, the buying price in Europe and America is 1.3543 and the selling price is 1.3546, so the price difference between Europe and America is three points. There are five decimal places, and the fourth one is a single digit.
Brokers profit from spreads. The bigger the spread, the higher the seller's price and the lower the buyer's price. Therefore, you need to pay more when you buy, and get less when you sell, so it is difficult to make a profit. The spread is the compensation for the risks that market bears must bear when they execute customer transactions after crossing their own risk exposure (possibly at different prices).
The price difference will seriously affect the return of trading strategy. More than you think. As a trader, the general pursuit is to buy at a low price and sell at a high price. A high spread means buying at a high price and selling at a low price. The spread of half a point doesn't sound like much, but this spread can often make the originally profitable trading strategy unprofitable.
Spot crude oil pricing
Crude oil is $65,438 +00 per point, with a price difference of 6 points. (expansion: natural gas per point 10 USD, with a price difference of 20 points).
Crude oil is a very attractive trade commodity. Like retail investors, commodity investors want to participate in the ever-changing energy market.
Crude oil largely depends on the relationship between supply and demand. When the supply exceeds the demand, the price will rise, and when the supply exceeds the demand, the price will fall. There are many other factors, such as natural disasters, wars and political changes, which will affect the price of crude oil contracts. These factors make crude oil such an active trading product. Most importantly, by investing in spot crude oil, you can easily get help and determine all the information about market trends.