Forex Trading

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Forex Trading Spreads / Conditions

Currency PairKey Information DocumentMinimum Price
Fluctuation
Spreads
as low as*
Average Spreads*Long Swap Value
(Points)**
Short Swap Value
(Points)**
Value of 1 lotLimit and Stop Levels***
EURUSD0.000010.00010.00016-11.675.43100000 EUR0.0004
GBPUSD0.000010.00010.00021-9.172.03100000 GBP0.00052
USDJPY0.0010.010.0164.92-11.08100000 USD0.04
USDCHF0.000010.00010.000236.02-11.43100000 USD0.0005
AUDUSD0.000010.00010.00019-2.93-1.03100000 AUD0.0005
AUDCAD0.000010.000210.0003-3.45-4.4100000 AUD0.0016
AUDCHF0.000010.000120.000352.3-8.2100000 AUD0.0016
AUDJPY0.0010.010.0331.43-8.07100000 AUD0.099
AUDNZD0.000010.000140.00045-3.51-5.31100000 AUD0.0021
CADJPY0.0010.0130.0341.26-8.34100000 CAD0.1
CADCHF0.000010.000240.000372.28-8.58100000 CAD0.0018
CHFJPY0.0010.010.03-6.37-2.91100000 CHF0.12
CHFSGD0.000010.000220.0025-19.64-0.94100000 CHF0.0028
EURAUD0.000010.000230.00038-16.143.26100000 EUR0.0012
EURCAD0.000010.000210.00035-15.052.75100000 EUR0.0014
EURCHF0.000010.000170.00027-3.7-5.7100000 EUR0.00062
EURDKK****0.000010.001060.0027-51.7-60.7100000 EUR0.0026
EURGBP0.000010.00010.0002-5.290.51100000 EUR0.0005
EURHKD****0.000010.000740.0033-94.77-39.57100000 EUR0.0052
EURHUF0.0010.080.3-29.56-18.86100000 EUR0.6
EURJPY0.0010.010.025-3.99-3.09100000 EUR0.054
EURNOK0.000010.001350.00697-104.59-35.19100000 EUR0.0062
EURPLN0.000010.002990.005-59.96-5.26100000 EUR0.0054
EURSEK0.000010.001770.0055-75.86-80.86100000 EUR0.0056
GBPSGD0.000010.000420.0028-15.98-10.88100000 GBP0.0034
EURSGD0.000010.000240.00163-20.04-3.64100000 EUR0.0014
EURTRY****0.000010.001110.00867-502.27331.63100000 EUR0.003
EURZAR0.000010.002480.015-425.71176.49100000 EUR0.0258
GBPAUD0.000010.000120.00039-12.99-1.79100000 GBP0.0016
GBPCAD0.000010.000150.00052-11.6-2.5100000 GBP0.002
GBPCHF0.000010.000160.00040.16-10.94100000 GBP0.00178
GBPDKK****0.000010.00030.0055-30.96-93.66100000 GBP0.006
GBPJPY0.0010.010.0330.19-8.31100000 GBP0.108
EURNZD0.000010.000280.00067-16.222.38100000 EUR0.0022
GBPNOK0.000010.00130.0078-82.81-77.51100000 GBP0.0146
GBPNZD0.000010.000350.00061-12.34-3.54100000 GBP0.0036
GBPSEK0.000010.00330.0085-44.67-131.87100000 GBP0.014
NZDCAD0.000010.000310.00045-4-3.3100000 NZD0.0018
NZDCHF0.000010.000210.00051.61-7.19100000 NZD0.002
NZDJPY0.0010.0140.050.8-7.1100000 NZD0.14
NZDSGD0.000010.000340.0025-7.39-6.59100000 NZD0.0022
NZDUSD0.000010.000110.00029-3.2-0.5100000 NZD0.0008
SGDJPY0.0010.0330.2-1.62-10.81100000 SGD0.14
USDCAD0.000010.00010.00021-1.35-5.85100000 USD0.00052
USDDKK****0.000010.00020.00342.7-101.5100000 USD0.0034
USDHKD****0.00010.00110.0028-3.01-8.81100000 USD0.0026
USDHUF0.0010.1010.25-4.59-38.09100000 USD0.52
USDMXN0.000010.00170.011-477.28172.72100000 USD0.0103
USDNOK0.000010.000520.0055-30.75-95.45100000 USD0.0078
USDPLN0.000010.000720.0037-20.92-35.42100000 USD0.007
USDSEK0.000010.000290.00493.67-141.53100000 USD0.0082
USDSGD0.000010.00030.002-7.6-12.6100000 USD0.0014
USDTRY****0.000010.000690.00715-418.93257.07100000 USD0.0028
USDZAR0.00010.01150.016-26.554.65100000 USD0.0206
USDRUB****0.00010.01850.42-168.74-13.74100000 USD0.034
EURRUB****0.00010.01650.42-260.4253.32100000 EUR0.034
USDCNH****0.00010.00180.0036-7.23-3.23100000 USD0.005
Currency PairKey Information DocumentMinimum Price
Fluctuation
Spreads
as low as*
Average Spreads*Long Swap Value
(Points)**
Short Swap Value
(Points)**
Value of 1 lotLimit and Stop Levels***
AUDCADmicro0.000010.000210.0003-3.45-4.41000 AUD0.0016
AUDCHFmicro0.000010.000120.000352.3-8.21000 AUD0.0016
AUDJPYmicro0.0010.010.0331.43-8.071000 AUD0.099
AUDNZDmicro0.000010.000140.00045-3.51-5.311000 AUD0.0021
AUDUSDmicro0.000010.00010.00019-2.93-1.031000 AUD0.0005
CADCHFmicro0.000010.000240.000372.28-8.581000 CAD0.0018
CADJPYmicro0.0010.0130.0342.28-8.341000 CAD0.1
CHFJPYmicro0.0010.010.032.28-2.911000 CHF0.12
CHFSGDmicro0.000010.000220.0025-19.64-0.941000 CHF0.0028
EURAUDmicro0.000010.000230.00038-16.143.261000 EUR0.0012
EURCADmicro0.000010.000210.000352.282.751000 EUR0.0014
EURCHFmicro0.000010.000170.000272.28-5.71000 EUR0.00062
EURDKKmicro****0.000010.001060.0027-51.7-60.71000 EUR0.0026
EURGBPmicro0.000010.00010.00022.280.511000 EUR0.0005
EURHKDmicro****0.000010.000740.0033-94.77-39.571000 EUR0.0052
EURHUFmicro0.0010.080.3-29.56-18.861000 EUR0.6
EURJPYmicro0.0010.010.0252.28-3.091000 EUR0.054
EURNOKmicro0.000010.001350.00697-104.59-35.191000 EUR0.0062
EURNZDmicro0.000010.000280.00067-16.222.381000 EUR0.0022
EURPLNmicro0.000010.002990.005-59.96-5.261000 EUR0.0054
EURSEKmicro0.000010.001770.0055-75.86-80.861000 EUR0.0056
EURSGDmicro0.000010.000240.00163-20.04-3.641000 EUR0.0014
EURTRYmicro0.000010.001110.00867-502.27331.631000 EUR0.003
EURUSDmicro0.000010.00010.000162.285.431000 EUR0.0004
EURZARmicro0.000010.002480.015-425.71176.491000 EUR0.0258
GBPAUDmicro0.000010.000120.00039-12.99-1.791000 GBP0.0016
GBPCADmicro0.000010.000150.000522.28-2.51000 GBP0.002
GBPCHFmicro0.000010.000160.00042.28-10.941000 GBP0.00178
GBPDKKmicro****0.000010.00030.0055-30.96-93.661000 GBP0.006
GBPJPYmicro0.0010.010.0332.28-8.311000 GBP0.108
GBPNOKmicro0.000010.00130.0078-82.81-77.511000 GBP0.0146
GBPNZDmicro0.000010.000350.00061-12.34-3.541000 GBP0.0036
GBPSEKmicro0.000010.00330.0085-44.67-131.871000 GBP0.014
GBPSGDmicro0.000010.000420.0028-15.98-10.881000 GBP0.0034
GBPUSDmicro0.000010.00010.000212.282.031000 GBP0.00052
NZDCADmicro0.000010.000310.00045-4-3.31000 NZD0.0018
NZDCHFmicro0.000010.000210.00051.61-7.191000 NZD0.002
NZDJPYmicro0.0010.0140.050.8-7.11000 NZD0.14
NZDSGDmicro0.000010.000340.0025-7.39-6.591000 NZD0.0022
NZDUSDmicro0.000010.000110.00029-3.2-0.51000 NZD0.0008
SGDJPYmicro0.0010.0330.2-1.62-10.811000 SGD0.14
USDCADmicro0.000010.00010.000212.28-5.851000 USD0.00052
USDCHFmicro0.000010.00010.000232.28-11.431000 USD0.0005
USDHKDmicro****0.00010.00110.0028-3.01-8.811000 USD0.0026
USDDKKmicro****0.000010.00020.00342.7-101.51000 USD0.0034
USDHUFmicro0.0010.1010.25-4.59-38.091000 USD0.52
USDJPYmicro0.0010.010.0162.28-11.081000 USD0.04
USDMXNmicro0.000010.00170.011-477.28172.721000 USD0.0103
USDNOKmicro0.000010.000520.0055-30.75-95.451000 USD0.0078
USDPLNmicro0.000010.000720.0037-20.92-35.421000 USD0.007
USDSEKmicro0.000010.000290.00493.67-141.531000 USD0.0082
USDSGDmicro0.000010.00030.002-7.6-12.61000 USD0.0014
USDTRYmicro0.000010.000690.00715-418.93257.071000 USD0.0028
USDZARmicro0.00010.01150.016-26.554.651000 USD0.0206
USDRUBmicro****0.00010.01850.42-168.74-13.741000 USD0.0456
EURRUBmicro****0.00010.01650.42-260.4253.321000 EUR0.0738
USDCNHmicro****0.00010.00180.0036-7.23-3.231000 USD0.005
Currency PairKey Information DocumentMinimum Price
Fluctuation
Average Spreads*Commission per 100,000 USD traded*****Long Swap Value
(Points)**
Short Swap Value
(Points)**
Value of 1 lotLimit and Stop Levels***
GBPJPY.0.0010.0093.5 USD0.19-8.31100000 GBP0.108
GBPNZD.0.000010.000253.5 USD-12.34-3.54100000 GBP0.0036
USDJPY.0.0010.0013.5 USD4.92-11.08100000 USD0.04
NZDUSD.0.000010.00013.5 USD-3.2-0.5100000 NZD0.0008
GBPUSD.0.000010.000033.5 USD-9.172.03100000 GBP0.00052
AUDCAD.0.000010.00013.5 USD-3.45-4.4100000 AUD0.0016
AUDCHF.0.000010.000153.5 USD2.3-8.2100000 AUD0.0016
AUDJPY.0.0010.0123.5 USD1.43-8.07100000 AUD0.099
AUDNZD.0.000010.000173.5 USD-3.51-5.31100000 AUD0.0021
AUDUSD.0.000010.000033.5 USD-2.93-1.03100000 AUD0.0005
CADCHF.0.000010.000193.5 USD2.28-8.58100000 CAD0.0018
CADJPY.0.0010.0143.5 USD1.26-8.34100000 CAD0.1
CHFJPY.0.0010.0073.5 USD-6.37-2.91100000 CHF0.12
CHFSGD.0.000010.001753.5 USD-19.64-0.94100000 CHF0.0028
EURAUD.0.000010.00013.5 USD-16.143.26100000 EUR0.0012
EURCAD.0.000010.000093.5 USD-15.052.75100000 EUR0.0014
EURCHF.0.000010.000083.5 USD-3.7-5.7100000 EUR0.00062
EURDKK.****0.000010.001153.5 USD-51.7-60.7100000 EUR0.0026
EURGBP.0.000010.000043.5 USD-5.290.51100000 EUR0.0005
EURHKD.****0.000010.00153.5 USD-94.77-39.57100000 EUR0.0052
EURHUF.0.0010.2023.5 USD-29.56-18.86100000 EUR0.6
EURJPY.0.0010.0023.5 USD-3.99-3.09100000 EUR0.054
EURNOK.0.000010.004383.5 USD-104.59-35.19100000 EUR0.0062
EURNZD.0.000010.00033.5 USD-16.222.38100000 EUR0.0022
EURPLN.0.000010.00273.5 USD-59.96-5.26100000 EUR0.0054
EURRUB.****0.00010.283.5 USD-260.4253.32100000 EUR0.0738
EURSEK.0.000010.0033.5 USD-75.86-80.86100000 EUR0.0056
EURSGD.0.000010.00093.5 USD-20.04-3.64100000 EUR0.0014
EURTRY.0.000010.007443.5 USD-502.27331.63100000 EUR0.003
EURUSD.0.000010.000013.5 USD-11.675.43100000 EUR0.0004
EURZAR.0.000010.00953.5 USD-425.71176.49100000 EUR0.0258
GBPAUD.0.000010.00023.5 USD-12.99-1.79100000 GBP0.0016
GBPCHF.0.000010.000193.5 USD0.16-10.94100000 GBP0.00178
GBPCAD.0.000010.000223.5 USD-11.6-2.5100000 GBP0.002
GBPDKK.****0.000010.003393.5 USD-30.96-93.66100000 GBP0.006
GBPNOK.0.000010.00613.5 USD-82.81-77.51100000 GBP0.0146
GBPSEK.0.000010.00473.5 USD-44.67-131.87100000 GBP0.014
GBPSGD.0.000010.00133.5 USD-15.98-10.88100000 GBP0.0034
NZDCAD.0.000010.000193.5 USD-4-3.3100000 NZD0.0018
NZDCHF.0.000010.000273.5 USD1.61-7.19100000 NZD0.002
NZDJPY.0.0010.0253.5 USD0.8-7.1100000 NZD0.14
NZDSGD.0.000010.001833.5 USD-7.39-6.59100000 NZD0.0022
SGDJPY.0.0010.1433.5 USD-1.62-10.81100000 SGD0.14
USDCAD.0.000010.000063.5 USD-1.35-5.85100000 USD0.00052
USDCHF.0.000010.000053.5 USD6.02-11.43100000 USD0.0005
USDDKK.****0.000010.000793.5 USD2.7-101.5100000 USD0.0034
USDHKD.****0.00010.00053.5 USD-3.01-8.81100000 USD0.0026
USDHUF.0.0010.143.5 USD-4.59-38.09100000 USD0.52
USDMXN.0.000010.0053.5 USD-477.28172.72100000 USD0.0103
USDNOK.0.000010.003563.5 USD-30.75-95.45100000 USD0.0078
USDPLN.0.000010.00243.5 USD-20.92-35.42100000 USD0.007
USDRUB.****0.00010.293.5 USD-168.74-13.74100000 USD0.0456
USDSEK.0.000010.003033.5 USD3.67-141.53100000 USD0.0082
USDSGD.0.000010.001363.5 USD-7.6-12.6100000 USD0.0014
USDTRY.0.000010.005523.5 USD-418.93257.07100000 USD0.0028
USDZAR.0.00010.00963.5 USD-26.554.65100000 USD0.0206

Examples of the commission fee calculation (XM Zero Accounts only)

Example 1


To position Buy 3 lots USD/JPY, the transaction volume is 300,000 USD. Considering that for a USD 100,000 transaction size commission is charged for both opening and closing the position at USD 3.5 each, for this transaction it will be: 2 x (3.5 x 300,000 / 100,000) = 21 USD. The commission fee is deducted from the account during the opening of the transaction for both the operations at once (opening and closing).


Example 2


For a “Buy 2 lots EUR/USD” position the transaction size is 200,000 EUR which corresponds to 220,000 USD, given a EUR/USD exchange rate of 1.10000. Considering that for a USD 100,000 transaction size commission is charged for both opening and closing the position at USD 3.5 each, for this transaction it will be: 2 x (3.5 x 220,000 / 100,000) = 15.4 USD. The commission fee is deducted from the account during the opening of the transaction for both the operations at once (opening and closing).

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

Monday – Friday: 09:05 – 17:55

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

Monday – Friday: 00:05 – 23:50

* The average spreads indicated here are calculated throughout the day. They tend to be narrower under normal market conditions. However, spreads may widen as a result of important news announcements, during political uncertainty, because of unexpected events that can lead to volatile market conditions, or at the close of the business day, or at the weekends when liquidity is lower. When you trade at our company, Trading Point is your counter-party. Your trades are matched and any next exposure above the predefined thresholds is hedged with our liquidity providers at the current market spread. However, during volatile and illiquid market conditions our liquidity providers quote spreads larger than normal. 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.

**** For all account types on the MT4 and MT5 platforms, the leverage for EURDKK, EURHKD, GBPDKK, USDDKK, USDHKD, USDCNH, EURRUB and USDRUB is capped at 1:50, and for USDTRY, EURTRY it is capped at 1:100.

***** For instruments not denoted in USD calculations should be based at the current exchange rate (for XM Zero Accounts only)

For all account types, the leverage is capped at 1:400 for all CHF currency pairs on the MT4 and MT5 platforms.

About Forex Trading

Forex trading, or currency trading, or FX trading, as it can be also abbreviated, are all terms that describe the currency exchange market as we know it today, which in simple language refers to the global, decentralized marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

The current floating rates system, which we know today, was adopted after World War II and has been in effect ever since. Prior to the current forex trading rates system, a monetary management system called the Bretton Woods Agreement was in existence, in which the exchange prices of currencies against each other were tied and correlated to the reserves of gold in possession of the two countries that were the originators of the actual currencies related to a transaction.

Forex Trading Marketplace

The forex trading marketplace, as it stands today, is the world’s largest and most liquid market due to a number of factors which include, but are not limited to, ease of performing transactions over the internet, the modern development of travelling, ease of international communication and modern transportation, which have made our world a smaller place.

By making our world a smaller and more global place, this automatically means that people, goods and services can travel faster and more easily. This also means that a necessity of currencies to be traded against each other is needed in order for this to happen. All these factors have determined a growing forex trading marketplace, which will only continue to grow and become more dynamic, liquid and responsive.

Online Forex Trading

Among the main participants of the forex trading market, one of the most growing segments of the total pool of participants of the marketplace, are retail foreign exchange traders (individuals) who participate in online forex trading for mainly speculative reasons with the ultimate goal of generating a profit from currency fluctuations (market changes), or hedging unwanted currency risk.

This segment participates in the forex trading marketplace via a broker (like XM), or via a bank. In this case, the bank or the broker will issue the retail client a trading account that will be funded in a base currency (usually the local currency of the region where the client is domiciled), and the client will have the opportunity to buy and sell currencies both online and over the phone with the goal of deriving profit.

Forex Trading via a Broker

Participating in the forex trading marketplace via a broker like XM means that the client receives access to real-time pricing of the forex marketplace and is quoted buy and sell prices for a number of instruments via an online trading platform (or via the phone). The client has the freedom to decide at which price they decide to buy or sell, and vice versa, and can execute a transaction at any time they wish.

What is Forex Trading?

Forex trading, also known by the name of currency trading or FX trading, refers to buying a particular currency while selling another in exchange. Trading currencies always involves exchanging one currency for another.

The ultimate aim can vary and can be any of the below but not limited to the below:

  • 1. Exchanging currency A (e.g. USD) to currency B (e.g. EUR) for travelling purposes;
  • 2. Exchanging currency A (e.g. USD) to currency B (e.g. EUR) for trading purposes;
  • 3. Exchanging currency A (e.g. USD) to currency B (e.g. EUR) for speculative purposes, with the goal to make a profit.

Due to all the above, and not limited to the above, the forex trading market is today the world’s most liquid and most volatile market, with over $5 trillion traded daily.

How Does Forex Trading Work?

Forex trading is in essence trading currencies for one another. As such, an XM client sells one currency against another at a current market rate.

In order to be able to trade, it is required to open an account and hold currency A and then exchange currency A for currency B either for a long term or a short-term trade, with the ultimate goal varying accordingly.

Since FX trading is performed 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 so-called base currency, while the second currency is called the 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.

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.

What Influences Prices in Forex Trading?

There is an endless number of factors that all contribute and influence the prices in forex trading (i.e. currency rates) daily, but it could be safe to say that there are 6 major factors which contribute the most and are more or less the main driving forces for forex trading price fluctuation:

  • 1. Differentials in inflation
  • 2. Differentials in interest rates
  • 3. Current account deficits
  • 4. Public debt
  • 5. Terms of trade
  • 6. Political and economic stability

In order to best comprehend the above 6 factors, you will have to keep in mind that currencies are traded against one another. So when one falls, another one rises as the price denomination of any currency is always stated against another currency.

What is Forex Trading Software?

Forex trading software is an online trading platform provided to each XM client, which allows them to view, analyze and trade currencies, or other asset classes.

In simple terms, each XM client is provided access to a trading platform (i.e. software) which is directly connected to the global market price feed and allows them to perform transactions without the help of a third party.

Who are Forex Trading Market Participants?

Forex trading market participants can fall in any of the following categories:

  • 1. Travellers or overseas consumers who exchange money to travel overseas or purchase goods from overseas.
  • 2. Businesses that purchase raw materials or goods from overseas and need to exchange their local currency to the currency of the country of the seller.
  • 3. Investors or speculators who exchange currencies, which either require a foreign currency, to perform trading in equities or other asset classes from overseas or either are trading currencies with the aim of making a profit from market changes.
  • 4. Banking institutions that exchange money to service their clients or to lend money to overseas clients.
  • 5. Governments or central banks that either buy or sell currencies and try to adjust financial imbalances, or adjust economic conditions.

What is Important in Forex Trading?

As a retail foreign exchange trader, the most important factors that affect your trading is trade execution quality, speed and spreads. The one affects the other.

A spread is the difference between the bid and the ask price of a currency pair (buy or sell price), and so to make it even easier it is the price at which your broker or bank is willing to sell or buy your requested trade order. Spreads, however, only matter with the correct execution.

In the forex trading marketplace, when we refer to execution we mean the speed at which a foreign exchange trader can actually buy or sell what they see on their screen or what they are quoted as bid/ask price over the phone. A good price makes no sense if your bank or broker cannot fill your order fast enough to get that bid/ask price.

What are Majors in Forex Trading?

In forex trading, some currency pairs are nicknamed majors (major pairs). This category includes the most traded currency pairs and they always include the USD on one side.

Major pairs include: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD

What are Minors in Forex Trading?

In forex trading, minor currency pairs or crosses are all currency pairs that do not include the USD on one side.

What are Exotics in Forex Trading?

In forex trading, exotic pairs include the less traded currency pairs that include a major currency paired with the currency of a smaller or emerging economy. These pairs usually have less volatility, less liquidity and do not present the dynamic behavior of major pairs and crosses.

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