A bid is the price in one currency at which a dealer will buy another currency. An ask is the price at which a dealer will sell the other currency. Dealers bid (buy) at one price and ask (sell) at a slightly higher price, making their profit from the spread between the prices. List and explain three reasons/factors that could make the spread small.

Answer rating: 100% (QA)

Market Liquidity When there is high liquidity in the market meaning there are many buyers and sell... View the full answer