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The Foreign Exchange Market (FX) is the arena in which one nation’s currency is exchanged for that of another at a mutually agreed rate. It was created in the 1970’s when international trade transitioned from fixed to floating exchange rates, and is now considered to be the largest financial market in the world because of its huge turnover.
In Forex trading all currencies are traded in pairs, with the ‘base’ currency being the first currency of the pair and the ‘quote’ or ‘term’ currency being the second currency in the pair.
Base currency Quote currency Rate USD JPY = 120.25
This abbreviation specifies how much you have to pay in the quote currency to obtain one unit of the base currency (in this example, 120.25 Japanese Yen for one US Dollar). The minimum rate fluctuation is called a point or a pip.
Most currencies, except USD/JPY, EUR/JPY, CHF/JPY and other Yen crosses where a pip is 0.01, have 4 digits after the period (a pip is 0.0001), and sometimes they are abbreviated to the last two digits. For example, if EURUSD is traded at 1.2389/1.2391 the quote may be abbreviated to 89/91.
features
- Tight spreads
- Use of expert advisor
- Powerful and user-friendly trading software
- Leverage up to 1:50
- Trade 24 hours per day, 5 days a week
- Over 70 forex pairs to choose from
calculation
- GLOBALINVEST Trading Hours: Sunday – Friday (22:00 – 22:00) Server Tim
- Min and Max Lots per trade: 0.01 lots – 500 lots
- All contract size is 100,000 of the base currency
- Subject to change without prior notice
- Leverage USDTRY 1:25, EURTRY 1:15. Swaps will be charged on these currency pairs even if a swap-free setting is enabled.
Margin Requirement Calculation Formulas:
Example for calculating the margin requirement for GLOBALINVEST trades is as follows:
Required Margin = (Trade Size (lot size) / leverage) * account currency exchange rate (if different from the base currency in the pair being traded).
Example:
Trading 1 lot of GBP/USD using 1:200 leverage with an account currency denominated in USD
1 lot = 100,000
Leverage = 200
Base currency/Account currency exchange rate = 1.58
100,000/200 = 500
500 * 1.58 = 790
Required margin on this trade is $790.
