IC Markets offers Forex traders some of the tightest spreads out of all Forex exchange brokers globally with our EUR/USD spread averaging 0.1 pips. Tight spreads combined with our low latency enterprise grade hardware makes IC Markets the ideal choice for active day traders and those using Expert Advisors. The following table shows our minimum and average spreads across all of the major currency pairs. If you've ever traveled overseas, you've made a forex transaction. Take a trip to France and you convert your pounds into euros. When you do this, the forex exchange rate between the two currencies�based on supply and demand�determines how many euros you get for your pounds. And the exchange rate fluctuates continuously.
For example, we sell�one contract AUD/USD at a price of 0.73700. After some time the market moves in our direction and is trading at 0.73200. We decide to take our profits and close the position. The profit made will be: 0.73700 - 0.73200 = 50 pips (1 lot = USD10 per pip); therefore, the total profit�is 50 x 10 = USD500.
Leverage is the key for profiting in Forex. Forex dealers often allow their clients to trade with high margin. Margin trading refers to the leverage amount given to the traders to make purchase in the FOREX market. Typical FOREX margins can go up to 100 to 1 or even 200 to 1 where traders are given the power to buy 100 to 200 times more than what they can afford. With high leverage rates in Forex market, traders often find themselves controlling a big sum of money with a little cash put on the table.
The risk of loss in online trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial. Many people also say that the NZD/USD is a major pair (involving the currencies of New Zealand and the US) although it carries a smaller percentage of the total volume.
Mandal says he decided to withdraw some money in March. In an e-mailed response, Secure said he'd have to wait. It cited issues with the U.S. Foreign Account Tax Compliance Act, which is a Treasury Department rule that applies to U.S. citizens using foreign accounts - a law that was irrelevant to Mandal, who's a U.K. citizen. The March 5 e-mail said Mandal would get the money in a few days.