Question

Foreign exchange​ ________ earn a profit by a bidminusask spread on currencies they purchase and sell. Foreign exchange​ ________, on the other​ hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase.

Answer 1

Answer:

Dealers ; Brokers

Explanation:

Foreign exchange dealers make money or profit by buying stock at lower price and selling the same at a higher price. They do this by adding a markup on the price of stock bought by them and sell the same to a buyer. The markup serves as profit to dealers.

Foreign exchange brokers act as intermediary between buyers and sellers as traders could execute trades through a brokers only. A broker earns profit in the form of commissions and fees earned on executing each transaction.