Foreign exchange

Foreign exchange

Foreign exchange market is world's largest financial market with a daily circulation of more than $4 trillion. Every trading in almost all markets will have an impact on foreign exchange market, including the futures market, fund market and stock market. Meanwhile, all banks, governments and companies around the world are involved in this high liquidity foreign exchange market. Their trading behaviors will cause price fluctuations, which in turn makes it possible for foreign exchange traders to gain long-term profits. In the powerful cTrader trading platform, utrade provides a true ECN account that allows traders to directly get access to global trading market.

Connecting to more than 30 foreign exchange currency pairs

uTrade connects foreign exchange traders to the world's highest liquidity foreign exchange market, so that we can experience the financial institution-level trading in a trading environment with strong liquidity.

Connecting to cTrader in any method

Connecting to cTrader trading account anywhere and anytime as long as accessing to the Internet. In this way, traders can get access to their foreign exchange account quickly and safely, which guarantees instant access to cTrader account once the opportunity comes.

uTrade is a leader using intelligent foreign exchange trading solutions.

Up to 400:1 foreign exchange leverage is optional

Depending on the degree of risk tolerance, up to 400:1 foreign exchange leverage is optional. By means of risk management and overall risk level, professional foreign exchange traders can continue to make profits under market volatility. If properly used, leverage will be the winning weapon to gain continuous profits.

Foreign currency spread

The last figure of exchange rate prices is called one point. For example, the 0.01 in USD/JPY is 114.51, and 0.0001 in EUR/USD is 1.2801 are called one point, which is the minimum basic unit of exchange rate change. The 5 decimal fractions in some of quotation platforms are called 0.1 points.

In foreign exchange trading, you will see a quote on both sides that consists of purchasing price (ask) and selling price (bid). The purchasing price represents the price at which you can buy the base currency (and sell the non-base currency at the same time); the selling price indicates the price at which you can sell the base currency (and buy the non-base currency at the same time). The difference between purchasing price and selling price is the spread, and the trader makes a profit through the spread. EUR/USD with 0.3 spread can be expressed as 1.25000/1.25003; USD/JPY with 0.3 spread can be expressed as 114.005/114.008.

Instance of foreign exchange

Selling EUR/USD

€200,000 x 1.33623 = USD267246

The current price of EUR/USD is 1.33623/1.33624, so you decide to sell 200 shares of €200,000 at 1.33623.

To sell current position requires €200,000 x 1.33623 = USD267246. If the leverage of your trading account is 1:100, the deposit required for opening a position is USD267246/100=USD $ 2,672.46.

€200,000 x 1.32129 = USD264259

Then the calculation of gross margin in your trading is as follows:

Calculate
Opening position €200,000 x 1.33623 = USD267246
Closing out €200,000 x 1.32129 = USD264259
Gross margin 2988

The matters you need to pay attentions are

1.The overnight position holding needs to pay the overnight interest.

2.The spread during trading is the difference between the purchasing price and selling price. The spread used in the UFO platform of utrade will be basically the same as the spread of intra-bank trading, which is the lowest spread of all trading platforms, even at 0 pips.

3.Fees; in the ECN platform, cTrader unilaterally charges $3/lot for every 10,000 units traded (ie 1 mini lot).

Contract details

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