In the FX market, currencies are always priced in pairs. The quoted price is the level where we, acting as the market maker, are willing to buy/sell the currency pair. In the wholesale market, currencies are quoted out to four decimal places, with the last placeholder called a point or a pip. A pip in most currencies is one /10,000th of an exchange rate (in USD/JPY, it is one /100th).
FXCM does not charge commissions or any other fees to trade or maintain a Regular (100K) Trading Account. This arrangement is available to ALL accounts regardless of account balance or trade volume. In foreign exchange, there is an immediate cost in establishing a position. For example, USD/JPY may bid at 103.40 and ask at 103.45, this five-pip spread defines the trader's cost, which can be recovered with a favorable currency move in the market. The value of a pip is determined by the pair of currencies being traded, the rate at which the currency pair is trading and the size of the position being traded.
For example:
JPY is a two-decimal-place currency. Here is how to calculate the value of 1 pip.
Currency Pair Price Lot Size
USD/JPY 125.00 $100,000
To find the value of one pip with this exchange rate use
0.01 x $100,000/125.00 per pip. Each pip is worth $8.00.
CHF and CAD are four-decimal-place currency. Here is how to calculate the value of 1 pip.
Currency Pair Price Lot Size
USD/CHF 1.7545 $100,000
To find the value of one pip with this exchange rate use
.0001 x $100,000/1.7545= $5.70
Currency Pair Price Lot Size
USD/CAD 1.5274 $100,000
To find the value of one pip on this exchange rate us
.0001 x $100,000/1.5274= $6.55
*Note that these three currency pairs are USD based.
The following currency pairs have a fixed value of $10 per pip ($1 per pip on the Mini):
EUR/USD
GBP/USD
AUD/USD
NZD/USD
The following cross currency pairs are calculated in the following manner:
EUR/GBP... Take the rate GBP/USD is trading at and move the decimal over.
Ex. GBP/USD=1.4151 then each pip of EUR/GBP=$14.15
EUR/AUD...Take the rate AUD/USD is trading at and move the decimal over.
Ex. AUD/USD=. 5178 then each pip of EUR/AUD=$5.18
EUR/JPY.... same as USD/JPY
EUR/CAD...same as USD/CAD
GBP/CAD...same as USD/CAD
GBP/CHF...same as USD/CHF
GBP/JPY...same as USD/JPY
AUD/CAD...same as USD/CAD
AUD/JPY...same as USD/JPY
CHF/JPY....same as USD/JPY
Please note that one of the key features of the FX Trading Station is live P/L tracking. The key information for every account is re-calculated and updated every time the exchange rates change. Upon logging into the account, clients have immediate access to key information. The Account Balance and floating P/L in dollars are` displayed in the Account Information window. In addition, detailed information about every open position, open order, and a summary of account holdings can be seen on the main page of the Internet Currency Trading Platform. To illustrate this point please click on the following link to “Walk Through a Trade”:
http://www.fxcm.com/software_preview.html
At FXCM, under normal trading conditions, traders receive a spread of four pips on the EUR/USD pair and a spread of five pips on the other major currency pairs (USD/JPY, USD/CHF, and GBP/USD). FXCM provides competitive spreads on a total of 17 currency pairs, including USD/CAD, NZD/USD and AUD/USD, at rates, which accurately reflect where the market is trading. During non-peak trading hours when the market is less liquid, FXCM still maintains 4-5 pip spreads.
FXCM deals with counter parties on the FX Prime Brokerage Desk, including major banks, such as Citibank, ABN-AMRO, Royal Bank of Scotland, Commerzbank, and Deutsche Bank. Using such credit worthy clearing firms, FXCM is capable of providing competitive market prices. Since the FXCM trading platform displays prices to all clients on one screen, there is no shading of prices to individual clients. Therefore, clients can be assured that they are receiving fair and accurate pricing at all times when they are trading with FXCM.
Sorry didnt see the title of the thread before I replied.
