For any pair of currencies, the price difference is the difference between the price you buy or sell the currency. For all investment tools-stocks, bonds, futures, commodities, foreign exchange, etc. -all involve what we call spreads. The price difference is the necessary cost of the transaction; This is a cost charged to you by the company or organization that executes your transaction. The more direct your relationship with the company that executes the transaction, the lower your transaction cost. Unlike other well-known financial service fees, such as commission, the price difference is not a fixed amount. On the contrary, the price difference consists of two quotations provided by the company that trades for you: the price you bought and the price you sold. The company that trades for you will buy it from you at a certain price and sell it to you at another price. So, if you want to buy a currency and sell it immediately, you can only sell it at a lower price, because you can only sell it at a lower price (lower than the price you gave when you bought it). Therefore, the following phenomenon appears: Therefore, if a buyer opens his position at 50 o'clock and intends to close his position immediately, he can only sell it at 45 o'clock. In this example, the exchange rate needs to rise by 5 points-indicating that the offer should be 50-55-before the buyer can sell at 50 points, and it has just reached breakeven. Obviously, the price difference here is the transaction cost: although the exchange rate has risen by 5 points, the net profit for traders is still only zero. Transparent price difference: Know the true cost of each transaction, which can be seen at any time. In the past, most individual investors could not really see the buying and selling price before trading. On the contrary, they can only get one quotation: if they want to ship, they will get the payment; If they want to buy goods, they will get the selling price. So the spread is a hidden cost, and the company that executes your order hides this cost. In this way, the company executing the order can increase the price difference when necessary, thus increasing the transaction cost without notifying the market participants. However, with the development of revolutionary technologies such as the Internet, this market has become more transparent: finally, individual traders can clearly see the price difference, so they can clearly understand all the transaction costs before trading.