SuperForex’s No Spread Account

This account offers the possibility to engage in trading without paying any spreads when you open new deals, valid for all trading instruments SuperForex has available.

Both new and existing customers are welcome to register this type of account where spreads have been replaced by fixed commission fees. Due to the lack of spreads with this account, the full cost of every order is available in advance and can be checked in MetaTrader 4, which would help you make accurate calculations about your funds and orders.

To open a No Spread Account you must make a deposit of 100 USD or EUR within 24 hours of registration.

Recently, SuperForex has decided to decrease the commission applied to No Spread accounts – it’s now up to 25% less than the regular rates.

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Spread, Pips and Lot

1. Spread

Forex quotes are quoted with 2 prices, the bid and ask(offer). The difference between the bid and the ask price is known as the
spread. The spread is the primary cost of trading between currencies. The amount of the spread is based on many factors, such as market volatility, currency liquidity, etc.

2. Pip

The unit FX movements are measured in is call a Pip. If EUR/USD moves from 1.1278 to 1.1279, the 0.0001 USD rise in value is 1 Pip. A pip is usually the fourth decimal place of a quotation, but there are few currency pairs where a pip refers to other decimal places. For example USD/JPY. If USD/JPY moves from 113.68 to 113.69, i.e. 0.01, the pair has moved 1 Pip.

The price of a pip depends on the pair.

• In EUR/USD for a position of 100,000, an increase or decrease of the currency by one pip means an increase or decrease of EUR 100,000*0.0001= USD 10
• In USD/JPY for a position of 100,000, an increase or decrease of the currency by one pip means an increase or decrease of USD 100.000*0.01= JPY 1000

3. Lot

Forex is traded in specific amounts called lots. The standard size for a lot is 100,000 units. However, there are different lot sizes as shown on the below table.

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Currency Pairs Categories

Major Currency Pairs

The currency pairs on the left are referred to as the majors and each contains U.S. dollar (USD) on one side. The majors are the most liquid and widely traded currency pairs in the world.

Exotic Currency Pairs

Exotic currency pairs, or the exotics, include currency pairs from emerging markets, such as Brazil, Mexico, Hungary. On the left are some examples.

Major Cross-Currency Pairs or Minor Currency Pairs

Cross-currency pairs/Crosses are currency pairs that do not contain the U.S dollar. Major crosses are also known as “minors.” The most actively traded crosses are derived from the three major non-USD currencies: EUR, JPY, and GBP.

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Forex Trading Sessions

Forex market is open 24 hours a day, but it is not always active the whole day. There are trading opportunities when the market is moving up or down. However, it will be difficult if the market does not move at all.

The forex market is sectioned into four major trading sessions: Sydney, Tokyo, London and New York. Below are tables on the open and close hours. The hours are based on local business hours. This varies during October and April as some countries shift to/from daylight savings time (DST). The day within each month that a country may shift to/from DST also varies.

In between each forex trading session, there is a period of time where two sessions are open at the same time. Tokyo and London sessions overlap during summer from 3:00 – 4:00 am EDT. The London and New York sessions overlap on both summer and winter from 8:00 am – 12:00 pm ET. Certainly, these are the busiest times during the trading day as there is more volume when two markets are open at the same time.

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How to Read Quote (Currency Pairs)

Currencies are quoted in pairs, for example EUR/USD or USD/JPY. The first currency on the left is called the base currency (EUR in this example), and the second currency on the right is called the quote or variable currency (USD in this example).

From the price of a currency pair, it tells you how many of the quote currency it would take to buy, or sell, one unit of the base currency.

For example:

EUR/USD trading at 1.12738 means:

EUR 1 = USD 1.12738

You will buy (long) EUR/USD if your analysis forecasts the base currency (EUR) will appreciate relative to the quote currency (USD). However, you will sell the pair if your analysis forecasts the base currency (EUR) will depreciate relative to the quote currency.