Brokers With the Highest Volume for Cross Pair
Trading volume is a way to measure how often security trades over a set period of time. The higher the volume, the more active the instrument you're trading with. Some traders like to trade with high volume, because it reduces liquidity risk, minimizes volatility, and is perfect for smaller spreads. To answer these needs, several brokers start offering high volume.
No matter what currency you trade with, choosing the right broker is important. Brokers tend to play a vital role in affecting your trading activities. Which forex pair are you trading with? If you trade with cross pair you can refer to this list of brokers with the highest volume for cross pair.
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How to make a profit trading in cross pairs?
One way to get profitable with cross pairs is to find the highly correlated ones. Some currency pairs might be tied together because of certain world events. For example, EUR/GBP is a great pair to trade during the ongoing Brexit saga. In 2016, the Brexit vote increased the pair by 13% for 2-weeks. Such momentum can be very helpful when you trade with cross currency pairs.
Continue Reading at Best Forex Brokers to Trade Cross Currency Pairs
What is an example of the difference in spread between major and cross pairs?
The following is an example of the difference in spread between major and cross pairs that exist at the IC Markets broker:
Major Pair
Cross Pair
Please see the example below to compare the profits you get when trading on major and cross-pairs.
Vicky opened 10 positions on EUR/USD with a spread of 0.6 pips, resulting in a total cost of 6 pips to cover the spread. Each time she opened a position, she targeted a profit of 10 pips. Therefore, the total profit obtained after the spread was 94 pips (100 - 6 pips).
On the other hand, Timmy opened 10 positions on AUD/CAD with a spread of 1.68 pips, resulting in a total cost of 16.8 pips to cover the spread. Similar to Vicky, he targeted a profit of 10 pips per position. Therefore, the total profit minus spread that Timmy got would be 83.2 pips (100 - 16.8 pips).
As you can see, even though they had the same number of trades and profit targets, the choice of currency pair can influence the eventual gain because of the spread differences. Vicky, who traded on a major pair, gained more pips. On the other hand, Timmy earned smaller profits due to higher spreads charged in AUD/CAD which is a cross pair.
Continue Reading at How Does Spread Affect Profit in Forex?
Why is trading volume less favored in floating leverage?
For a trader, volume-based floating leverage is much more complicated because it's vulnerable to market changes. It's common knowledge that the forex market is full of uncertainties, so the probability of getting a leverage adjustment due to volatility changes is higher than you initially thought. Another thing is, the volume-based policy's stance towards leverage change always leads to a decrease, so traders are consistently required to pay attention to margin increase.
Continue Reading at What is Floating Leverage in Forex Trading?
How does trading volume affect floating leverage?
Floating leverage can change under certain conditions, one of which is based on the trading volume. Volume-based floating leverage typically decreases along with the increase in trading volume.
Say you initially trade with 1:200 leverage. When your trading volume amounts to more than $3 million, the leverage would be automatically changed to 1:100. The adjustment can apply to the next level of volume increase, depending on how your broker sets the rule. It is important to note that the change of margin requirement that is brought by the new leverage would only apply to positions opened after the adjustment So, you don't have to worry about increased margin in your previous trades.
Continue Reading at What is Floating Leverage in Forex Trading?
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