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Inside the Currency Market: Mechanics, Valuation, and Strategies
book

Inside the Currency Market: Mechanics, Valuation, and Strategies

by Brian Twomey
November 2011
Beginner
335 pages
9h 33m
English
Bloomberg Press
Content preview from Inside the Currency Market: Mechanics, Valuation, and Strategies

Margin: Europe, Switzerland, England, Australia, Hong Kong, and Canada

Spreads are higher through European brokers compared to the U.S. but leverage is 100 to 1 with a 1 percent margin in some nations. Generally brokers apply automatically a 5 percent margin that can be changed higher at the request of the trader. This equates to a 50-to-1 margin. The British pound/Japanese yen will cost easily a set nine-pip spread and higher throughout any trading day, 70 pips for U.S. dollar/South African Rand.

Switzerland is no different in set spread prices, yet some Swiss brokers also charge a volume commission. Traders pay the least amount of these three categories: volume according to net deposit, volume based on equity, or volume based on traded volume. ...

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Publisher Resources

ISBN: 9781118149331Purchase book