Spread Price of LP

Beginner Questions
1

Hi,

  1. Initial date:

    In this lesson, we have these informations:

    a. “Elsa is back and has decided to go long 3,000,000 EUR/USD at 1.2000.”

    b. “This means that her broker now has a short position of 3,000,000 EUR/USD.”

    c. The broker finds an external counterparty and buys 3,000,000 EUR/USD from it.

    At point b) the broker sell to Elsa at 1.2000.

    At point c) the broker buy at 1.2000 from third-party (LP) and LP sell at 1.2000 to broker.

  2. Question:

    At point c) how was it possible (luck, negotiation, etc.) for the broker to buy at the same price 1,2000 (as when the broker sold to Elsa) from LP ?

    I expected the broker to have to buy at a higher price from LP (in the sense that there is some kind of spread).

2

I agree. If there’s no spread, there’s no profit for the broker.

In wider terms, all the talk of “buying” and “selling” in the private retail forex market is not making things any clearer. We’re not buying or selling currency or anything else, we’re speculating. Or you could call it betting.

3

Hi , the spread has been skip for better situation describe. Regards Greg