Forex Trading

Forex - Spreads / Conditions

    Spreads* Swap Value in Points**    
Currency Pair Minimum Price
Fluctuation
As low as Average Long Short Value of 1 lot Limit and Stop
Levels***
AUDCAD 0.00001 0.00021 0.00048 1.36 -7.84 100000 AUD 0.0016
AUDCHF 0.00001 0.00012 0.00047 2.16 -10.34 100000 AUD 0.0016
AUDJPY 0.00100 0.01 0.048 2.22 -8.38 100000 AUD 0.099
AUDNZD 0.00001 0.00014 0.00042 -8.09 -0.19 100000 AUD 0.0021
AUDUSD 0.00001 0.0001 0.00022 1.63 -6.37 100000 AUD 0.0005
CADCHF 0.00001 0.00024 0.00049 0.08 -5.12 100000 CAD 0.0018
CADJPY 0.00100 0.013 0.041 -0.8 -5.1 100000 CAD 0.1
CHFJPY 0.00100 0.01 0.03 -8.93 -3.43 100000 CHF 0.12
CHFSGD 0.00001 0.00022 0.001 -18.07 -0.77 100000 CHF 0.0028
EURAUD 0.00001 0.00023 0.00045 -14.92 5.08 100000 EUR 0.0012
EURCAD 0.00001 0.00021 0.0005 -7.73 -0.8 100000 EUR 0.0014
EURCHF 0.00001 0.00017 0.0003 -2.97 -8.27 100000 EUR 0.00062
EURDKK 0.00001 0.00106 0.00165 -28.23 -24.93 100000 EUR 0.0026
EURGBP 0.00001 0.0001 0.0002 -3.64 -0.44 100000 EUR 0.0005
EURHKD 0.00001 0.00074 0.0021 -36.1 -17.9 100000 EUR 0.0052
EURHUF 0.00100 0.08 0.33 -26.82 0.08 100000 EUR 0.6
EURJPY 0.00100 0.01 0.027 -3.75 -3.85 100000 EUR 0.054
EURNOK 0.00001 0.00135 0.0068 -68.23 8.07 100000 EUR 0.0062
EURNZD 0.00001 0.00028 0.00082 -20.8 12.3 100000 EUR 0.0022
EURPLN 0.00001 0.00299 0.0047 -29.95 2.59 100000 EUR 0.0054
EURRUB**** 0.00001 0.0165 0.037 -244.23 169.22 100000 EUR 0.0738
EURSEK 0.00001 0.00177 0.00475 -22.76 -34.69 100000 EUR 0.0056
EURSGD 0.00001 0.00024 0.00062 -16.53 -3.03 100000 EUR 0.0014
EURTRY 0.00001 0.00111 0.00225 -73.6 33.7 100000 EUR 0.003
EURUSD 0.00001 0.0001 0.00018 -3.68 -1.78 100000 EUR 0.0004
EURZAR 0.00001 0.00248 0.0096 -324.11 181.1 100000 EUR 0.0258
GBPAUD 0.00001 0.00012 0.00065 -17.38 3.22 100000 GBP 0.0016
GBPCAD 0.00001 0.00015 0.0006 -6.69 -6.39 100000 GBP 0.002
GBPCHF 0.00001 0.00016 0.00038 -1.29 -13.09 100000 GBP 0.00178
GBPDKK 0.00001 0.0003 0.004 -24.12 -53.82 100000 GBP 0.006
GBPJPY 0.00100 0.01 0.04 -1.51 -7.57 100000 GBP 0.108
GBPNOK 0.00001 0.0013 0.01 -62.32 -21.92 100000 GBP 0.0146
GBPNZD 0.00001 0.00035 0.0008 -27.3 12.7 100000 GBP 0.0036
GBPSEK 0.00001 0.0033 0.0095 -5.38 -72.88 100000 GBP 0.014
GBPSGD 0.00001 0.00042 0.00094 -19.53 -8.43 100000 GBP 0.0034
GBPUSD 0.00001 0.0001 0.00026 -1.9 -4.5 100000 GBP 0.00052
NZDCAD 0.00001 0.00031 0.0007 3.21 -9.4 100000 NZD 0.0018
NZDCHF 0.00001 0.00021 0.00058 5.12 -9.68 100000 NZD 0.002
NZDJPY 0.00100 0.014 0.046 5.81 -11.7 100000 NZD 0.14
NZDSGD 0.00001 0.00034 0.0008 -1.02 -11.22 100000 NZD 0.0022
NZDUSD 0.00001 0.00011 0.0003 3.62 -8.18 100000 NZD 0.0008
SGDJPY 0.00100 0.033 0.053 -3.93 -9.03 100000 SGD 0.14
USDCAD 0.00001 0.0001 0.00022 -5.2 -3.2 100000 USD 0.00052
USDCHF 0.00001 0.0001 0.00026 -1.28 -7.58 100000 USD 0.0005
USDCNH 0.00010 0.0018 0.0025 -6 0 100000 USD 0.005
USDDKK 0.00001 0.0002 0.00155 -29.68 -42.18 100000 USD 0.0034
USDHKD 0.00010 0.0011 0.0014 -5.044 -5.154 100000 USD 0.0026
USDHUF 0.00100 0.101 0.321 -22.07 -4.37 100000 USD 0.52
USDJPY 0.00100 0.01 0.02 -2.88 -4.28 100000 USD 0.04
USDMXN 0.00001 0.0017 0.0055 -196.74 33.29 100000 USD 0.0103
USDNOK 0.00001 0.00052 0.0056 -39.29 3.91 100000 USD 0.0078
USDPLN 0.00001 0.00072 0.002 -24.16 -3.89 100000 USD 0.007
USDRUB**** 0.00010 0.0185 0.052 -217.53 148.99 100000 USD 0.0456
USDSEK 0.00001 0.00029 0.0028 -31.05 -60.75 100000 USD 0.0082
USDSGD 0.00001 0.0003 0.0006 -13.07 -6.97 100000 USD 0.0014
USDTRY 0.00001 0.00069 0.00187 -65.9 30.8 100000 USD 0.0028
USDZAR 0.00010 0.0115 0.0157 -25.31 15.77 100000 USD 0.0206
    Spreads* Swap Value in Points**    
Currency Pair Minimum Price
Fluctuation
As low as Average Long Short Value of 1 lot Limit and Stop
Levels***
AUDCADmicro 0.00001 0.00021 0.00048 1.36 -7.84 1000 AUD 0.0016
AUDCHFmicro 0.00001 0.00012 0.00047 2.16 -10.34 1000 AUD 0.0016
AUDJPYmicro 0.00100 0.01 0.048 2.22 -8.38 1000 AUD 0.099
AUDNZDmicro 0.00001 0.00014 0.00042 -8.09 -0.19 1000 AUD 0.0021
AUDUSDmicro 0.00001 0.0001 0.00022 1.63 -6.37 1000 AUD 0.0005
CADCHFmicro 0.00001 0.00024 0.00049 0.08 -5.12 1000 CAD 0.0018
CADJPYmicro 0.00100 0.013 0.041 -0.8 -5.1 1000 CAD 0.1
CHFJPYmicro 0.00100 0.01 0.03 -8.93 -3.43 1000 CHF 0.12
CHFSGDmicro 0.00001 0.00022 0.00054 -18.07 -0.77 1000 CHF 0.0028
EURAUDmicro 0.00001 0.00023 0.00045 -14.92 5.08 1000 EUR 0.0012
EURCADmicro 0.00001 0.00021 0.0005 -7.73 -0.8 1000 EUR 0.0014
EURCHFmicro 0.00001 0.00017 0.0003 -2.97 -8.27 1000 EUR 0.00062
EURDKKmicro 0.00001 0.00106 0.00165 -28.23 -24.93 1000 EUR 0.0026
EURGBPmicro 0.00001 0.0001 0.0002 -3.64 -0.44 1000 EUR 0.0005
EURHKDmicro 0.00001 0.00074 0.0021 -36.1 -17.9 1000 EUR 0.0052
EURHUFmicro 0.00100 0.08 0.33 -26.82 0.08 1000 EUR 0.6
EURJPYmicro 0.00100 0.01 0.027 -3.75 -3.85 1000 EUR 0.054
EURNOKmicro 0.00001 0.00135 0.0049 -68.23 8.07 1000 EUR 0.0062
EURNZDmicro 0.00001 0.00028 0.00082 -20.8 12.3 1000 EUR 0.0022
EURPLNmicro 0.00001 0.00299 0.0047 -29.95 2.59 1000 EUR 0.0054
EURRUBmicro**** 0.00001 0.0165 0.037 -244.23 169.22 1000 EUR 0.0738
EURSEKmicro 0.00001 0.00177 0.00475 -22.76 -34.69 1000 EUR 0.0056
EURSGDmicro 0.00001 0.00024 0.00062 -16.53 -3.03 1000 EUR 0.0014
EURTRYmicro 0.00001 0.00111 0.00225 -73.6 33.7 1000 EUR 0.003
EURUSDmicro 0.00001 0.0001 0.00018 -3.68 -1.78 1000 EUR 0.0004
EURZARmicro 0.00001 0.00248 0.0096 -324.11 181.1 1000 EUR 0.0258
GBPAUDmicro 0.00001 0.00012 0.00065 -17.38 3.22 1000 GBP 0.0016
GBPCADmicro 0.00001 0.00015 0.0005 -6.69 -6.39 1000 GBP 0.002
GBPCHFmicro 0.00001 0.00016 0.00038 -1.29 -13.09 1000 GBP 0.00178
GBPDKKmicro 0.00001 0.0003 0.00186 -24.12 -53.82 1000 GBP 0.006
GBPJPYmicro 0.00100 0.01 0.04 -1.51 -7.57 1000 GBP 0.108
GBPNOKmicro 0.00001 0.0013 0.005 -62.32 -21.92 1000 GBP 0.0146
GBPNZDmicro 0.00001 0.00035 0.0008 -27.3 12.7 1000 GBP 0.0036
GBPSEKmicro 0.00001 0.0033 0.0095 -5.38 -72.88 1000 GBP 0.014
GBPSGDmicro 0.00001 0.00042 0.00094 -19.53 -8.43 1000 GBP 0.0034
GBPUSDmicro 0.00001 0.0001 0.00026 -1.9 -4.5 1000 GBP 0.00052
NZDCADmicro 0.00001 0.00031 0.0007 3.21 -9.4 1000 NZD 0.0018
NZDCHFmicro 0.00001 0.00021 0.00058 5.12 -9.68 1000 NZD 0.002
NZDJPYmicro 0.00100 0.014 0.046 5.81 -11.7 1000 NZD 0.14
NZDSGDmicro 0.00001 0.00034 0.0008 -1.02 -11.22 1000 NZD 0.0022
NZDUSDmicro 0.00001 0.00011 0.0003 3.62 -8.18 1000 NZD 0.0008
SGDJPYmicro 0.00100 0.033 0.053 -3.93 -9.03 1000 SGD 0.14
USDCADmicro 0.00001 0.0001 0.00022 -5.2 -3.2 1000 USD 0.00052
USDCHFmicro 0.00001 0.0001 0.00026 -1.28 -7.58 1000 USD 0.0005
USDCNHmicro 0.00010 0.0018 0.0025 -6 0 1000 USD 0.005
USDDKKmicro 0.00001 0.0002 0.001 -29.68 -42.18 1000 USD 0.0034
USDHKDmicro 0.00010 0.0011 0.0014 -5.044 -5.154 1000 USD 0.0026
USDHUFmicro 0.00100 0.101 0.321 -22.07 -4.37 1000 USD 0.52
USDJPYmicro 0.00100 0.01 0.02 -2.88 -4.28 1000 USD 0.04
USDMXNmicro 0.00001 0.0017 0.0055 -196.74 33.29 1000 USD 0.0103
USDNOKmicro 0.00001 0.00052 0.003 -39.29 3.91 1000 USD 0.0078
USDPLNmicro 0.00001 0.00072 0.002 -24.16 -3.89 1000 USD 0.007
USDRUBmicro**** 0.00010 0.0185 0.028 -217.53 148.99 1000 USD 0.0456
USDSEKmicro 0.00001 0.00029 0.0028 -31.05 -60.75 1000 USD 0.0082
USDSGDmicro 0.00001 0.0003 0.0006 -13.07 -6.97 1000 USD 0.0014
USDTRYmicro 0.00001 0.00069 0.00187 -65.9 30.8 1000 USD 0.0028
USDZARmicro 0.00010 0.0115 0.0157 -25.31 15.77 1000 USD 0.0206

RUB TRADING HOURS
(GMT+2 time zone, please note DST may apply)

Monday – Friday: 09:05 – 17:55

CNH TRADING HOURS
(GMT+2 time zone, please note DST may apply)

Monday – Friday: 04:35 – 23:55

FOREX TRADING HOURS
(GMT+2 time zone, please note DST may apply)

Monday – Friday: 00:05 – 23:50

* The average spreads shown here are calculated throughout the day. They tend to be narrower under normal market conditions. However, spreads may widen following important news announcements, during political uncertainty, unexpected events leading to volatile market conditions or at the close of the business day and on weekends when liquidity is lower. When you trade with us Trading Point is your counter-party. Your trades are matched and any next exposure above predefined thresholds is hedged with our partner banks (our liquidity providers) at the current market spread. However, during volatile and illiquid market conditions our liquidity providers quote larger than normal spreads. At such times Trading Point is forced to pass on some of the spread increases to its clients.

** If you leave an open position for the next trading day, you pay or you obtain the certain amount, calculated on the basis of interest rates difference of two currencies in currency pair. This operation is called "swap." In the trading terminal, "swap" is automatically converted into the deposit currency. The operation is conducted at 00.00 (GMT+2 time zone, please note DST may apply) and can take several minutes. From Wednesday to Thursday swap is charged for three days.

*** Minimum level for placing Stop Loss and Take Profit orders from a current market price.

**** USDRUB and EURRUB are not available for trading. The instruments are available for close only purpose.

Leverage Specifications

Leverage for EURDKK, EURHKD, GBPDKK, USDDKK, USDHKD, USDCNH, EURRUB and USDRUB is set to 1:50 for all accounts.

Margin required for positions on all CHF pairs is 4 times the margin set as per account leverage.

The Forex Market

Foreign currency (or forex) trading refers to buying and selling currencies online on the foreign exchange market, that is, trading currencies against one another in pairs, with the aim to make profits.

The foreign exchange, or forex, market is the worldwide largest market for international investment and trade on different currencies online. Without any actual physical location for buying and selling currencies, it is characterised by a decentralised structure and accessible via the Internet by investors around the world.

With its ability to facilitate the buying and selling of financial assets without causing drastic asset price changes, the foreign exchange market has the highest liquidity in the world. The market daily average turnover is over $5 trillion today, with over 80% of this growth mainly attributed to the trading activity of financial institutions through which the foreign exchange market operates. These major market participants include, among others, large central banks, institutional investors (organisations that invest large amounts of money in securities and other assets), currency speculators, governments, financial services providers (such as banks, trust companies, insurance companies), and retail investors.

The foreign currency market, unlike the stock market, is segmented into different access levels, having the interbank market at the top level (including the largest commercial and central banks in the world like Citi, Deutsche Bank, Barclays Investment Bank, UBS AG, HSBC, JP Morgan, or Goldman Sachs). Just like the foreign exchange market, the interbank market is also decentralized, encompassing the biggest commercial and investment banks, with almost 40% of all transactions carried out by top-tier banks. This is followed by the next level, which comprises medium-sized and small banks, hedge funds (private investment partnerships open to a limited number of investors only), commercial companies, retail ECNs (Electronic Communication Networks), retail forex broker companies, and retail traders (individual traders and investors).

With the advent of online trading platforms in 1996 the number of individual retail foreign exchange traders, who trade currencies and other financial instruments, has grown to a considerable segment of the forex market in terms of importance and size.

How Forex Trading Works

With its vast geographical dispersion, huge trading volume and 24-hour nonstop operation, except for weekends, the foreign exchange market is regarded as unique.

Forex trading is done on currency pairs (i.e. the quotation of the relative value of one currency unit against another currency unit), in which the first currency is the called base currency, while the second currency is called quote currency. For example, the quotation EUR/USD 1.2345 is the price of the euro expressed in US dollars, which means that 1 euro equals 1.2345 US dollars. The most frequently traded currency pairs (also called majors) include USD (US dollar), EUR (euro), GBP (British pound sterling), CHF (Swiss franc), JPY (Japanese yen), CAD (Canadian dollar), and AUD (Australian dollar).

Currency trading can be carried out 24 hours a day, from 22.00 GMT on Sunday until 22.00 GMT on Friday, with currencies traded among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Paris, Sydney, Singapore and Hong Kong. Typically, three are major trading sessions characterized by peak activity, also regarded as the powerhouses of day-to-day transactions: the European, the Asian and the North American sessions.

Forex Trading Historical Overview

The history of the various factors and major events that have shaped the forex market and currency trading to how we know them today can be traced back to prehistoric times, when trading was solely based on bartering (i.e. exchanging) goods without the actual use of currencies.

The beginning of modern foreign exchange is marked by the year 1880, when the Gold Standard monetary system was introduced, which emerged as a good alternative to compensate for the deficiencies of the old barter system. The most outstanding feature of this system was the fixed exchange rate set up by one country to another country’s currency, regardless of the means of exchange (banknotes or coins) they had in use. Not only did this facilitate trade between two different currencies but it also helped to control currency behavior and keep inflation down.

The 20th century witnessed a fast growth of foreign banks, especially in England, with as many as 40 foreign exchange broker firms in London by 1922 and with about half of the world’s foreign exchange being conducted in pound sterling. At that time, New York, Paris and Berlin were known as the most active trade centers. After World War II, the Bretton Woods Accord established the rules of financial relations and limited currency fluctuation within a range of 1% to the currencies par value. However, after the collapse of the Bretton Woods agreement the system of fixed rates exchange gradually turned into a free-floating currency system. Towards the end of the seventies nation-state dependent and heavily controlled foreign exchange took a major turn and gradually changed into floating market conditions.

Currency Trading Today

Today online currency trading is widely pursued by individual and corporate investors and traders around the world. It involves the buying and selling of various tradable financial assets online such as debt securities (banknotes or bonds), equity securities (stocks) or derivative securities (futures, options, swaps).

Since the end of the 1990’s currency trading, that is trading currencies from different countries against each other, has been a widely used form of investing by means of an electronic network and typically with brokerage companies providing online trading platforms to allow investors direct and real-time access to the global markets.

Before the birth of the Internet, investing was only possible by placing orders on the telephone through stockbrokers licensed to buy and sell stocks, bonds or other securities on the behalf of retail and institutional clients. As professional individuals who would act as the legitimate employees of brokerage firms or broker-dealer companies, stockbrokers would place investors’ orders through a stock exchange (such as the London Stock Exchange, the Tokyo Stock Exchange, or the New York Stock Exchange), or by off-exchange trading (directly between two parties) in return for a commission or fee for their services. All client orders handled by stockbrokers, who would thus act as intermediaries between investors and the financial markets, were entered in the brokerage firms’ systems, which were linked to trading floors and stock exchange centers.

1994 marks the advent of a significant growth in online trading. This was the year when the first brokerage firms started offering a groundbreaking service that changed the process of investing via the Internet: the possibility for investors to place their orders directly online and even trade through computer-driven electronic communication networks.

Since that time, foreign exchange, or currency, trading has become a worldwide popular form of online investing, which can be performed by practically speaking anyone who has Internet access. It is typically done on the online trading platform provided by a broker company, with trading orders placed with just a few clicks by clients and then passed over by the broker to the interbank market, which is the top-level foreign exchange market of banks exchanging various currencies. As soon as clients close their trades, their respective broker company closes their positions on the interbank market within a matter of seconds and credits clients’ trading accounts with the profit or the loss gained.

Today any online investor can have direct access to the global markets via online trading platforms and follow real-time price quotes on the 24-hour nonstop foreign exchange (forex) market. Trading platforms, among which MetaTrader 4 is the most acknowledged one, can be regarded as the core of the trading process as they allow investors to buy and sell currencies, or any other financial securities, by using built-in trading tools such as technical analysis charts, real-time streaming price quotes, news releases, and customized back testing to help trade profitability.