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FX Trading

FX Markup

The additional cost added by an FX provider to the rate at which they acquire a currency. It’s the difference between the market rate they receive and the rate they offer to you, serving as their profit margin.

  • Simple Example: If the mid-market rate for EUR/USD is 1.0950 but the bank provides an acquisition rate of 1.1050, the FX markup is the difference, which is 0.0100.
  • Numerical Breakdown:
    • Mid-Market Rate: 1.0950
    • Acquisition Rate: 1.1050
    • FX Markup: 1.1050 - 1.0950 = 0.0100
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