Forex Trading

The Best Value for Traders

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
#APPL	Apple Stock	0.050%	$0.50

The Trendiest yet Cheapest Market to Trade

Highly driven by technical factors

Technical analysis starts from understanding market psychology behind price movements. As the largest financial market with daily trading volume of over US$5 trillion, Forex reflects pure market psychology, making it impossible for even a central government to manipulate its price.

The most quantitative market available

Assuming ten people flip a coin, the ratio of heads to tails may be different each time. Now assuming one thousand people flip a coin, the ratio of heads to tails will be about 50/50. With a trading volume that is 25 times bigger than the trading volume of New York Stock Exchange, the supply and demand of a currency is very steady and trendy.

Forex market is the trendiest market

‘Trend is your friend’ is one of the first things professional traders learn to follow. Traders buy on up trend and sell on down trend, while the Forex market keeps its trends and patterns longer and clearer than any other financial market.

Equality in information for all investors

The stock market is dominated by institutional investors with large capital and plenty of resources to information, analysts, and insiders. In many cases, average investors are the last to get in and the last to get out. However, in the Forex market all economic data is released to the public at the same time, allowing for equal access to information and opportunities. Visit global economic calendar and get market data as soon as it is released.

How to trade Forex?

Trading Conditions

Commission

No commission to trade forex

While no commission is charged on forex trading, PSS may receive rebates from its liquidity providers and generates revenue from spreads.

Trading Hours

24 hours, 5 days per week

Forex markets open 24hours during weekdays. The market closes only on Saturdays and Sundays, including Christmas and New Year.

Contract Size

Forex contract is US$100,000 or equivalence amount of foreign currency.

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)

0.01 contact

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)

50 contacts

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.

Leverage

Adjustable leverage up to 500 to 1

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.

Learn more about leverage and margin requirement

Margin Call

Required Margin and 50% Stop Out

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.

Learn more about margin call and stop out

Margin Calculation Formula

Margin requirement for gold = Current Price of Currency Pair * US$100,000 * Number of Contract / Leverage

Profit Calculation Formula

Profit Calculation =

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

Overnight swap interest capped at 0.01%

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.

Learn more about Swap Interest and Interest Rate Cap