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Forex
Forex trading, also known as foreign exchange or currency trading, is a worldwide, decentralized market for currency exchange. The forex market is the largest, most liquid market in the world with an average trading volume in excess of $5 trillion per day. The forex market offers countless trading opportunities every second. You can choose from a wide array of popular forex pairs. With a market that is open 24 hours a day, 5 days a week and supported by our advanced tools, you will never have to miss an opportunity.
Forex advantages:
- Very high liquidity of world currencies;
- Trading is available 24 hours 5 days a week;
- Most popular currency pairs tradable;
- Opportunity of hedging and diversifying risks;
- Instant execution of orders.
Major currency pairs:
| Instruments | Silver Account | Raw Spread Account | Gold Account | Gold Account | Min trade size | Max trade per single order | Mark up Long | Mark up short |
|---|---|---|---|---|---|---|---|---|
| Spreads | ||||||||
| EURUSD | 1.2 | 0.1 | 0.9 | 0.9 | 0.01 | 30 | -12.67 | 4.73 |
| GBPUSD | 1.7 | 0.2 | 1.5 | 1.5 | 0.01 | 30 | 3.97 | 4.73 |
| GBPNZD | 1.8 | 0.3 | 1.6 | 1.2 | 0.01 | 30 | -9.50 | 3.38 |
| USDCAD | 2.1 | 0.4 | 1.9 | 1.9 | 0.01 | 30 | -4.55 | -12.24 |
| NZDCAD | 2.2 | 0.1 | 2.0 | 2.0 | 0.01 | 30 | 0.70 | -3.17 |
| CURNZD | 2.0 | 0.4 | 1.8 | 1.8 | 0.01 | 30 | -0.72 | -0.43 |
| GBPAUD | 2.0 | 0.3 | 1.8 | 1.8 | 0.01 | 30 | 1.46 | -5.33 |
| USDJPY | 2.6 | 0.5 | 2.4 | 2.4 | 0.01 | 30 | 4.55 | -12.24 |
Forex margin calculation:
All of MC's accounts have a leverage ratio of 1:20. Each 100,000 units of currency is represented as 1 lot. How do you calculate the margin? The margin calculation for forex works as follows:
Required Margin = Trade Size* account currency exchange rate / Leverage
Case example
- Case 1:
Assume that someone bought 1 lot of EURUSD at 1.13686. At this time, the price of EURGBP is 0.89258. - 1) If the currency of the account is in EUR, The required margin is: 1*100000/20=5000 (EUR);
- 2) If the account is in GBP, The required margin is: 1*100000*0.89258/20=4462.9 (GBP);
- 3) If the currency of the account is in USD, The required margin is: 1*100000*1.13686/20=5684.3(USD).
- Case 2:
Assume that someone bought 1 lot of USDJPY at 113.325. At this time, the price of GBPUSD is 1.27375.The price of EURUSD is 1.13686. - 1) If the currency of the account is in EUR, The required margin is:1*100000/（1.13686*20）=4398.079 (EUR);
- 2) If the account is in GBP, The required margin is:1*100000/1.27375*20=3925.417(GBP);
- 3) If the currency of the account is in USD, The required margin is:1*100000/20=5000(USD).
- Case 3:
Assume that someone bought 1 lot of EURCHF at 1.13313. At this time, the price of EURGBP is 0.89258. The price of EURUSD is 1.13686. - 1) If the currency of the account is in EUR, The required margin is:1*100000/20=5000 (EUR);
- 2) If the account is in GBP, The required margin is:1*100000*0.89258/20=4462.9(GBP);
- 3) If the currency of the account is in USD, The required margin is:1*100000*1.13686/20=5684.3(USD).