Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Forex

Trade Major, Minor & Exotic Currency Pairs

Trading Currencies

The most common form of trading is currency trading, otherwise known as forex trading. This is the act of buying one currency and selling another. Currencies are traded in pairs and these pairs fall under three categories; Majors, Minors and Exotics.

Major Currency Pairs

The Majors are the most popular and most liquid pairs and always have the US dollar as one half of the pair. Examples include the EUR/USD and the USD/JPY.

Minor Currency Pairs

The Minors are the pairs which do not include the US dollar, but contain the remaining major currencies; the EUR, JPY and GBP. The Minors have also been nicknamed 'Crosses'. Examples include the EUR/CHF and the EUR/GBP.

Exotic Currency Pairs

The Exotics are not as widely traded as the Majors and Minors; nonetheless, we offer them here at ForexTime (FXTM). These currency pairs are made up of a major currency pair coupled with the currency of a developing economy. Examples include the USD/HKD and the USD/NOK.

Example: buy 1 lot EUR/USD

Deposit: $10,000

Open Price: 1.15683

Close Price: 1.15974

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100,000 * 1.15683 = $115,683

Profit = (Close Price - Open Price) * Volume * Contract Size = (1.15974 - 1.15683) * 1 * 100,000 = $291

Costs

Swap = Volume * Swap Rate * Pip Value * Number of nights = 1 * -1.15 * 10 * 1 = -$11.5

Commission = (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100,000 * 1.15683) / 1,000,000 * -20 * 2 = -$4.63

Cumulative Costs = Swap + Commission = -$11.50 - $4.63 = -$16.13

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (16.13 / 115,683) * 100 = 0.0139%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (291 / 10,000) * 100 = 2.91%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (291 - 11.50 - 4.63 / 10,000 ) * 100 = 2.75%

Reduction of profit = 2.91% - 2.75% = 0.16%

 

Example: buy 1 lot EUR/USD

Deposit: $10,000

Open Price: 1.15683

Close Price: 1.15451

Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100,000 * 1.15683 = $115,683

Profit: (Close Price - Open Price) * Volume * Contract Size = (1.15451 - 1.15683) * 1 * 100,000 = -$232

Costs

Swap = Volume * Swap Rate * Pip Value * Number of nights = 1 * -1.15 * 10 * 1 = -$11.5

Commission = (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100,000 * 1.15683) / 1,000,000 * -20 * 2 = -$4.63

Cumulative Costs = Swap + Commission = -$11.50 - $4.63 = -$16.13

Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (16.13 / 115,683) * 100 = 0.0139%

Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (-232 / 10,000) * 100 = -2.32%

Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (-232 - 11.50 - 4.63 / 10,000 ) * 100 = -2.48%

Reduction of profit = 2.48% - 2.32% = 0.16%

*For FXTM Invest, the Strategy Profit Share represents a percentage of the profits that will be awarded to the Strategy Manager for his/her positive performance. Example: If the above example refers to a profitable trade in FXTM Invest, and the Strategy Manager sets a performance fee of 20%, then the Client’s net profit would amount to: (Net Profit) - (Net Profit * 20% Manager fee) = (291 - 16.13) - (274.87 * 20%) = $219.90.

**Such estimations are based on assumptions and may deviate from costs and charges that will actually be incurred. Swaps and commissions may be subject to change. For more information please refer to our contract specifications and commissions pages. Transaction costs and fees incurred in currencies other than the currency of the account are converted on a real-time basis in MetaTrader, at no additional cost to the client.

Currency Pairs

At ForexTime (FXTM) you can trade Major, Minor and Exotic currency pairs using any one of our state-of-the-art trading platforms. Download your trading platform and you'll be able to choose from a selection of over 50 currency pairs to trade.

Lot Sizes

Micro lots, mini lots and standard lots are available to choose from so depending on your experience and the kind of the trades you would like to make, you can choose the lot size that best suits you.

Fixed Leverage

Leverage is fixed based on the trading instrument and limited with 1:30 maximum.

Spreads

Take advantage of tight spreads; at ForexTime (FXTM) spreads start from 1.6 on the Standard account and from 0.1 on the ECN accounts.

Trading Hours

You can trade whenever you want with ForexTime (FXTM), even if it's the middle of the night. Our trading services are available 24 hours a day, 5 days a week.

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