Page 15 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 15 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629What are the factors affecting the bid/ask spread?- The Bid/ask spread is positively affected by:%uf0b7 The risk of dealing with the currency.%uf0b7 The order costs of the currency.%uf0b7 The expenses of storing the currency.- The Bid/ask spread is negatively affected by:%uf0b7 Competition (the higher the competition, the lower the Bid/ask spread).%uf0b7 The volume of transactions (the higher the volume of transactions, the lower the Bid/ask spread).Note that, for the most globally traded currencies, the Bid/ask spread on these currencies is low because their liquidity is high (low order costs, low riskof dealing with these currencies, low expenses of storing these currencies, high competition, and high volume of transactions).How can we evaluate foreign currency with another foreign currency, other than the dollar?The Cross Rates:In this case, the dollar is used as a mediator between the two currencies: Value of 1 unit of currency A in units of currency B:= value of currency A in $value of currency B in $Example:Suppose that the price of the Egyptian pound = 0.054 dollars and the price of the UAE dirham = 0.27, what is the value of the UAE dirham/ EGP, and the value of EGP/UAE dirham?Direct quote:The value of the UAE dirham/ EGP= $%ud835%udfce%ud835%udfce.054 / $%ud835%udfce%ud835%udfce.%ud835%udfd0%ud835%udfd0%ud835%udfd5%ud835%udfd5 = 0.2 UAE dirham/ EGP