Currency dealer and interbank market

CFA Level II Economics
#1

Hi everybody,

How is it that the currency dealer can always make money on the bid-ask spread hedging his position on the interbank market?

Interbank market always offers an advantage to the dealer?

How the quote on the interbank market works compared to the currency worldwide market?

Thanks.

#2

Dealers always buy at the bid price and sell at the ask price. Dealers are your enemies.

Try thinking about it in another context: that of a car dealer, rather than a currency dealer. Car dealers make money because they sell cars for more than they pay for them. So it is with currency dealers.

#3

Thanks to you again magician.

#4

You’re welcome.