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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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?
What are the most traded cross pairs?
Most traded cross currencies involve JPY, which are AUD/JPY, GBP/JPY, EUR/JPY, and so on. The reason is that trading against JPY creates interest rate gaps which could result in more profits.
Another most traded cross currency is EUR/GBP. Both represent some of the largest economies in the world, so it makes sense that many people trade them. However, cross currency pairs relatively have small daily movements compared to major currencies, and so forex traders usually ignore them.
Continue Reading at Currency Pairs Characteristics in the Forex Market
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
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?