Lets say I go money changer to exchange some malaysia ringgit .
lets say
SGD / MYR ( the we buy and we sell chart )
selling rate (bid ) 2.2934
buying rate (offer )2.3058
I wanna go malaysia for holiday
I xchange 1000 SGD for MYR
I am selling 1000 SGD for MYR .
I get 2.2934 times 1000 = 2293.40 MYR
They decrease the buying rate to 2.29
so I get 2.29 times 1000 = 2290 MYR
loss of 3.40 MYR
Then l came back to singapore
I change all my leftover ringgit back to singapore dollars
1000 MYR divided by 2.3058 = 433.68 SGD
they increase buying rate so I get lesser SGD
is that how they earn their profit ??????
correct me if i am wrong .