Broker Spreads
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Competitive Spreads with Ox Securities Significantly lower your trading costs, making your trading activities both efficient and economical.
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Global Forex Market Access Dive into one of the most vibrant and exciting financial markets with the opportunity to engage in trades within a highly liquid environment.
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Unmatched Market Liquidity Experience the convenience of executing large transactions smoothly, thanks to the immense volume of daily trades that minimize the impact on prices.
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Cost-Effective Trading Benefit from narrow spreads that reduce the cost of trading, allowing for more frequent and cost-efficient trading sessions.
Spreads from
Understanding How Spreads Impact Your Trading
Navigate the Impact of High Spreads
High spreads typically arise in exotic currency pairs due to low liquidity or high volatility, leading to wider spreads that can affect your trading costs and strategy.
Leverage the Advantage of Low Spreads
Low spreads indicate high liquidity or low volatility, often during active trading sessions without major news, enhancing cost efficiency for traders.
Understanding Forex Trading Essentials
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Currency Pair Exchange Rates Exchange rates are presented as two figures: the bid price and the ask price. These represent the selling and buying prices, respectively.
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Spread Signifies the gap between the bid and ask prices. It's a crucial factor in forex trading, affecting transaction costs.
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Buying and Selling Transactions are straightforward: you buy at the ask price and sell at the bid price. This mechanism ensures that trades are executed based on available market prices.
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Pips A pip stands for the minimal price movement in a currency pair, which is typically 0.0001 for most pairs and 0.01 for yen-based pairs. It's the standard unit for measuring price changes, crucial for understanding market movements.
Understanding Bid, Ask, and Spread
Bid/Ask Prices Explained
Consider the AUD/USD currency pair with a bid/ask price of 0.7103/0.7104. In this scenario, the Australian Dollar (AUD) is the base currency, while the US Dollar (USD) is the quote currency. To buy AUD against USD, the price is 0.7104, and to sell, it’s slightly lower at 0.7103.
What is Spread?
The spread is the difference between the buying and selling prices. For our example, the spread is calculated as 0.7104 (ask) – 0.7103 (bid) = 0.0001. This figure represents the trading cost of your transaction.
Trade Cost Examples
Example 1: You opt to buy 200,000 AUD/USD, anticipating that the AUD will appreciate against the USD. The cost of this trade, given the spread, is 0.0001 x 200,000 = $20.
Example 2: Alternatively, if you decide to sell 10,000 AUD/USD expecting a depreciation in the AUD’s value, the trade cost will be 0.0001 x 10,000 = $1.
These examples illustrate how spreads impact the cost of trading, emphasizing the importance of understanding these concepts for effective forex trading strategies.
Importance of Low Spreads for Traders
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Low spreads are crucial for executing a profitable trading strategy.
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Experiences of stop loss being hit by half a pip, followed by the market reversing favourably, are common and frustrating.
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Trading with tighter spreads or incorporating trade costs into commissions can make a significant difference.
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The ability to hold onto a trade for an extra half pip can be the deciding factor between a winning and losing trade.
An Account for Every Trader
Account
STANDARD-
Spreads from 1.0 pip
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$0 minimum deposit
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0.01 minimum trade size
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Leverage up to 1:500
Account
PRO-
Spreads from 0 pips
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$0 minimum deposit
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0.01 minimum trade size
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Leverage up to 1:500
Account
SWAP FREE-
Spreads from 1.0 pip
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$0 minimum deposit
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0.01 minimum trade size
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Leverage up to 1:500
