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Lowest Spread Forex Brokers For USD/JPY

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On any trading platform, there are two prices for each financial instrument – the Bid and the Ask. When buying or going long, traders use the Ask Price, while the Bid Price is used for selling or going short. The difference between the Bid and Ask Price represents the spread. It is an income for the broker (fee), which is also a cost for the trader. Therefore, a lower spread would be much better for traders.

Most brokers offer the lowest spread on several popular pairs, which one of those kinds is USD/JPY. This pair is quite familiar, especially for those who love Carry Trade, due to its low-interest rate. The daily price movement for USD/JPY is not as much as on GBP/USD or EUR/USD, because it is only about 100 pips. If you wish to trade on the lowest spread forex brokers for USD/JPY, a list below could be a great help in finding the best broker for you.


Apr 27 2024

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Score Broker USD/JPY Spread Min Deposit Max Leverage Regulation
Additional FAQ

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.

Gold and Yen Correlation

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

Given the importance of spreads in day trading, it is essential to find a broker that offers low spreads. Lower spreads can help day traders reduce their trading costs, which in turn can lead to increased profits.

It is noteworthy that IC Markets stands out in this regard because it offers lower spreads compared to its counterparts. For instance, the average spread on the EUR/USD for IC Markets' standard account is around 0.62 pips while FP Markets' is around 1.2 pips.

Continue Reading at Broker for Day Trading: FP Markets or IC Markets?

Japan is an energy-poor country, and largely depended on its nuclear generator and imported oil and gas. Therefore, high oil prices could be expected to hit hard on its economy. In line with this, CAD/JPY often make significant moves around the same time as oil prices. When oil prices fell, we could expect CAD/JPY to go down and vice versa.

oil

Continue Reading at How World Oil Prices Affect Forex, Before And After US Shale Fracking

A scalper can open and close 30 positions in a day. Say the broker charges a spread of 3 pips for every position, the profit average is 5 pips, the loss average is 3 pips, and the scalper makes 20 winning trades and 10 losing trades. The total profit and loss without the spread are:

(20 x 5) - (10 x 3) = 70 pips

If the spread is charged:

((20 x 5) - (10 x 3)) - (30 x 3) = -20 pips

The result is disappointing, right? Although they have made twenty profitable trades, the total profit/loss turns to minus once the spread is applied.

Continue Reading at The Secrets of Successful Scalping Strategy


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