You are a price maker. The bid for the AUD/USD is 0.7463. What price do you need to show to attract a customer wanting to sell AUD?
Question
You are a price maker.
The bid for the AUD/USD is 0.7463.
What price do you need to show to attract a customer wanting to sell AUD?
Solution
As a price maker, you would want to set a price that is attractive to a customer wanting to sell AUD. This means you would need to set your bid price slightly lower than the current bid price.
Here are the steps:
-
Identify the current bid price: The current bid price for AUD/USD is 0.7463. This is the price at which the market is willing to buy AUD.
-
Determine a competitive bid price: To attract a customer wanting to sell AUD, you would need to offer a price that is slightly lower than the current bid price. This is because the customer would be looking to sell at the highest possible price, and if your bid is lower, it would be more attractive to them.
-
Set your bid price: For example, if the current bid price is 0.7463, you might set your bid price at 0.7460 or 0.7458. This would make your bid more attractive to a customer wanting to sell AUD.
Remember, the goal is to attract the customer to sell their AUD to you, so you want to offer a competitive price that is still profitable for you.
Similar Questions
If AUD/USD is 0.7515/19 and EUR/USD is 1.1592/97, calculate the offer rate for AUD/EUR: Select one: a. 0.6480 b. 1.5417 c. 0.6484 d. 0.6486
When we are looking at the supply and demand for NZD in the foreign exchange market, why do we label the price axis as "USD/NZD"?
An article costs Rs.600.What should be the marked price of an article so that after 10% discount,the trader makes 20% profit?Rs.800Rs.950Rs.1100Rs.1040
Select the correct answerBy selling two articles for ₹800, a person gains the cost price of three articles. The profit percent is?Options120125150140
Arun bought a pair of skates at a sale where the discount given was 20%. If the amounthe pays is ₹1,600, find the marked price.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.