The Best Value for Traders
Cost to trade forex is usually 30% of the cost to trade stock index and 15% of the cost to trade stock.
|Symbol||Description||Transaction cost||Cost to buy $1000|
|EURUSD||Euro vs US Dollar||0.007%||$0.07|
|[NQ100]||Nasdaq 100 index||0.026%||$0.26|
The Trendiest yet Cheapest Market to Trade
The best market for analytical traders
Forex market has been a primary market for many professional traders and quantitative analysts due to following reasons:
Highly driven by technical factors
The most quantitative market available
Forex market is the trendiest market
Equality in information for all investors
While no commission is charged on forex trading, PSS may receive rebates from its liquidity providers and generates revenue from spreads.
Forex markets open 24hours during weekdays. The market closes only on Saturdays and Sundays, including Christmas and New Year.
- If a trader buys 1 contract of EURUSD at $1.250, then the trader is buying US$125,000 (US$100,000 * $1.250) worth of Euro and selling the same amount in US Dollar.
- If a trader buys 1 contract of USDJPY at ¥115.00, then the trader is buying ¥11,500,000 (US$100,000 * ¥115.00) worth of US Dollar and selling the same amount in Japanese Yen.
Min. Trading Size (In Contract Size)
The smallest amount that you can buy is 0.01 contracts which equals to US$1,000 (0.01 * $100,000).
Max. Trading Size (In Contract Size)
The largest amount that you can buy or sell at PSS is 50 contracts which is equal to around US$5,000,000.
Tick Price(Smallest Value in Quote)
0.00001 for most currency pairs Tick price for EURUSD (Euro against the US Dollar) is 0.00001 US Dollar which is equal to $1 per contract.
0.001 for Japanese YenTick price for USDJPY (US Dollar against Japanese Yen) is 0.001 Japanese Yen which equals to ¥100 per contract.
If you want to buy 1 contract of EURUSD (Euro against the US Dollar) at $1.25, you must have a minimum of $125,000 ($1.25 * US$100,000) in your trading account using 1 to 1 leverage. However, if you change the leverage to 50 to 1, you can buy up to 50 EURUSD contract using $125,000. In the same way, you can buy up to 500 EURUSD contract with $125,000 using 500 to 1 leverage.
Using 10 to 1 leverage, your required margin to buy 1 EURUSD at $1.25 is $12,500 ($1.25 * US$100,000 * 1/10). At all times, your account balance should be able to cover the required margin, regardless of market volatility. If your account balance falls below 100% of the required margin, you will get a margin call. In this case, you must deposit more funds or increase your leverage. If your account balance ever falls below 50% of the required margin, your open position will be forced to close by the system.
Margin Calculation Formula
Margin requirement for gold = Current Price of Currency Pair * US$100,000 * Number of Contract / Leverage
Profit Calculation Formula
Buy: (Close Price – Open Price) * Number of Contract * US$100,000
Sell: (Open Price – Close Price) * Number of Contract * US$100,000
Swap Interest Swap Charge Time
Swap Interest is charged once a day only if there is an open position when CME (Chicago Mercantile Exchange) close its future trading at 4pm Central Time (UTC – 6) every day. If there is no open position at 4pm CT, no swap interest will be charged.
Swap Interest calculation formula
Swap interest for a long position = The Interest Rate * Current price * Number of contracts * Contract Size * Premium / 360
Swap interest for a short position = The Interest Rate * Current price * Number of contracts * Contract Size *discount / 360
PSS uses Interest Rate Cap to protect traders from any sudden surge in swap interest causing unavoidable disruption in trading.