Resolved Question
How do brokers make money 2/2?
if I buy from the broker at a given price and then sell at a higher price, Ive still made money off the borker dispite the pip spead...How is this explained?
about 1 year ago
Best Answer - Chosen by Voters
The broker doesn't necessarily lose money because your buy/sell orders were matched with somebody else who wanted to sell/buy.
about 1 year ago
Answers (1)
You didn't exactly make money off the broker on this winning trade. What the broker did was match your trade (long) with an opposite one (short). If you won your trade, then that means the other trader lost. The broker still made a profit from the pip spread from both your transactions and the other trader's.
about 1 year ago
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