Brokers With the Highest Volume for USD/JPY

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?

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?

Gold has a positive correlation with Yen. Let's look at the chart below, which compares Yen Futures to Gold Futures from June to December 2020. The peaks and troughs of gold correlate to the peaks and troughs of Yen.

The graph also demonstrates that the connection is not perfect. In other words, the percentage-to-percentage change or point-to-pip basis between gold and Yen is not precise. Nonetheless, there is a level of linkage that cannot be disregarded even though the strength of the association can also be shown to alter over time.

Continue Reading at The Curious Case of Gold and Yen's Correlation

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?