The foreign exchange or the forex market is accepted as the most active and liquid financial markets in the world. Global daily forex turnover is estimated to be over $1.7 trillion.
The spot forex market is an over-the-counter market and is different from exchange-traded products because it has no physical location or central exchange. Foreign exchange trading takes place in the world major financial trading centers with the main centers being London, New York and Tokyo.
Trading hours are rarely restricted and prices are typically available in the major currency pairs almost without interruption during the working week. This liquidity and frequent volatility makes the trading of currencies an attractive investment opportunity for the experienced market participant.
Forex trading has many investment benefits some of which are:
Forex market is much more cost efficient to invest in terms of both commissions and transaction fees. In general, the width of the spread in a FX transaction is less than 1/10 as wide as a stock transaction.
Product |
Symbol |
Contract Size |
Spread |
Stop-Limit Orders |
Minimum Fluctuation |
Margin |
Trading Hours (GMT) |
Euro vs. |
EURUSD |
100,000 USD |
2 PIPS |
5 PIPS |
1 PIP = $10 |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
British Pound |
GBPUSD |
100,000 USD |
3 PIPS |
5 PIPS |
1 PIP = $10 |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
US Dollar vs. Japanese Yen |
USDJPY |
100,000 USD |
2 PIPS |
5 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
US Dollar vs. Swiss Franc |
USDCHF |
100,000 USD |
3 PIPS |
5 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Australian Dollar vs. US Dollar |
AUDUSD |
100,000 USD |
3 PIPS |
5 PIPS |
1 PIP = $10 |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
US Dollar vs. Canadian dollar |
USDCAD |
100,000 USD |
2 PIPS |
5 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
New Zealand Dollar vs. US Dollar |
NZDUSD |
100,000 USD |
3 PIP |
5 PIPS |
1 PIP = $10 |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Product |
Symbol |
Contract Size |
Spread |
Stop-Limit Orders |
Minimum Fluctuation |
Margin |
Trading Hours (GMT) |
Euro vs Japanese Yen |
EURJPY |
100,000 EUR |
3 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Euro vs British Pound |
EURGBP |
100,000 EUR |
3 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Euro vs Swiss Franc |
EURCHF |
100,000 EUR |
3 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
British Pound vs Japanese Yen |
GBPJPY |
100,000 GBP |
7 Pips |
15 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Euro vs Australian Dollar |
EURAUD |
100,000 EUR |
15 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Euro vs Canadian |
EURCAD |
100,000 EUR |
15 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
British Pound vs Australian Dollar |
GBPAUD |
100,000 GBP |
15 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
British Pound vs |
GBPCHF |
100,000 GBP |
7 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
British Pound vs Canadian Dollar |
GBPCAD |
100,000 GBP |
15 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Swiss Franc vs Japanese Yen |
CHFJPY |
100,000 CHF |
4 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Australian Dollar vs Canadian dollar |
AUDCAD |
100,000 AUD |
8 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
New Zealand Dollar vs Japanese Yen |
NZDJPY |
100,000 NZD |
6 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Australian Dollar vs Japanese Yen |
AUDJPY |
100,000 AUD |
5 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Australian Dollar vs |
AUDNZD |
100,000 AUD |
20 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Canadian Dollar vs Japanese Yen |
CADJPY |
100,000 CAD |
5 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Australian Dollar vs Swiss Franc |
AUDCHF |
100,000 AUD |
8 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
Canadian Dollar vs Swiss Franc |
CADCHF |
100,000 CAD |
8 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
New Zealand Dollar |
NZDCHF |
100,000 NZD |
8 Pips |
10 PIPS |
Variable |
1000 USD |
Open: sun 21:00 Close: Fri 21:00 |
A client believes that the EUR is due to rise in the future against US dollar, to get benefit of the situation the client intends to buy EURUSD. EURUSD is quoted at 1.3740 - 1.3743, the client buys 2 lots at 1.3743, the client requires minimum deposit of 1000 $ for each lot.
EURUSD prices rise to 1.3810 - 1.3813, the client is satisfied with his profit and wants to close his positions, he therefore sells 2 lots of EURUSD at 1.3810, so the client has made profit of 67 points (1.3810 - 1.3743 = 0.0067) . To calculate the profit we will do the following:
*Commission charges are NOT included in the above calculations
A client believes that the JPY will weaken in the future against US dollar, to get benefit of the situation the client intends to buy USDJPY. (Buying USD & selling JPY)
USDJPY is quoted at 112.50- 112.53, the client buys 4 lots at 112.53, the client requires minimum deposit of 1000 $ for each lot.
USDJPY prices rise to 112.95- 112.98, the client is satisfied with his profit and wants to close his positions, he therefore sells 4 lots of USDJPY at 112.95, so the client has made profit of 42 points (112.95 - 112.53 = 0.42)
. To calculate the profit we will do the following:
*Commission charges are NOT included in the above calculations
JMI Brokers is a Financial Service Provider Company registered, authorized and holds a Principals license from Vanuatu Financial Services Commission (VFSC) as “Dealers in Securities” to scarry on the business of dealing in securities under license number 15010
"Securities" means (as from the 2012 amendment) - (a) shares in the share capital of a corporation; or (b) an instrument that creates and acknowledges the indebt - securities that is issued by a corporation or a public office including: (i) debentures; or (ii) debenture stock; or (iii) loan stock; or (iv) bonds; or (v) certifications of deposit; or (c) a right, despite whether or not conferred by warrant, to subscribe for shares or debt securities; or (d) a right under a depositary receipt; or (e) an option to acquire or dispose of any security falling within any other provision of this Act; or (f) a right under a contract for the acquisition or disposal of the relevant securities under which the delivery is to be made at a future date and at a price agreed when the contract is made in accordance with the terms of that contract; or (g) the proceeds of Foreign Exchange; or FOREX (h) the proceeds of precious metals; or (i) the proceeds of commodities.
High Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by JMI Brokers you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. JMI Brokers provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. JMI Brokers recommends you seek advice from a separate financial advisor.
All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument.
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