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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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?
How are cent account trading volumes compared to the standard one?
With a cent account, you have access to a minimum trading volume of 0.01 lots which is equivalent to 0.0001 lots or $10. For a standard account, this minimum trading volume of 0.01 lots would be equivalent to $1000.
- Cent Account:
- Minimum trading volume: 0.01 lots
- Value per lot: $0.0001 (or equivalent to 0.01 lots)
- Therefore, the minimum trading volume value in dollars: 0.01 lots * $0.0001/lot = $0.0001
- Standard Account:
- Minimum trading volume: 0.01 lots
- Value per lot: $100 (or equivalent to 0.01 lots)
- Therefore, the minimum trading volume value in dollars: 0.01 lots * $100/lot = $1
Continue Reading at How Does a Cent Account Work?
What are the differences in spreads on major and cross pairs?
The following are some of the differences in spreads on major and cross pairs:
- Major currency pairs are the most liquid forex pairs, meaning many buyers and sellers are in the market. This makes major currency pairs the most profitable since they generally have the lowest spreads among other pairs.
- Cross-currency pairs are less liquid than major currency pairs, leading them to be charged with higher spreads. The profit margin for cross-pair trading may be smaller due to this characteristic.
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?
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