Forex trading conditions.

Every trader wants to achieve the highest possible profit, and Forex broker trading conditions play a significant role in increasing this profit.

Trading conditions are the sum of all the fees a broker charges for dealing, as well as other important operating parameters.

When choosing a brokerage, it's especially important that it matches your trading strategy; only then will trading be as comfortable as possible.

Now let's move on to what the "Trading Conditions" include.

• Initial deposit - the minimum amount required to be deposited into a trader's account to begin trading, ranges from 0 to $10,000 , depending on the dealing center .

• Minimum volume - or the minimum forex lot used when opening transactions. On standard accounts, this is usually 0.1 or, at best, 0.01 lots (10,000 or 1,000 units of the base currency). Cent accounts allow you to trade mini lots, in which case the minimum volume is 0.001 (100 units), and sometimes even less - 0.0001 (10 units).

• Spread - the size of the commission for one transaction, this is the first thing most traders pay attention to. The spread is calculated from one lot, for example, for the EURUSD currency pair the spread value is 1 point , or if translated into specific numbers, then the quoted currency and a simple formula are taken for the calculations - position volume * one point * dollar exchange rate, therefore, with a volume of 1 lot and a four-digit quote, we will pay 100,000 * 0.0001 * 1 = 10 dollars.

The spread indicator can be fixed or floating, the size of the latter depends on the liquidity of the currency pair and is constantly changing.

• Swap - a fee for transferring a position to the next day, is important only if you leave transactions overnight. Usually, its size does not greatly affect the final result, this type of commission is described in more detail in the article " Swap (swap or fee for transferring a position )".

• Stop out - the limit, upon reaching which your position will be automatically closed, usually it is 10 - 20 percent of the deposit.

• Order execution is market-based (at the market price, taking into account the deviation from the quoted price you set) and precise (if the prices do not match, the order is rejected). Trading efficiency is more influenced by the execution speed than by the execution option.

• Restrictions are a fairly important point in trading conditions; brokers typically limit such parameters as the minimum and maximum transaction time (for example, no shorter than 5 minutes or no longer than 2 weeks), the number of orders per day, the use of automated trading, and withdrawal restrictions. Moreover, you can only find out about the restrictions in the service agreement, which most traders simply ignore.

These are, perhaps, all the parameters you should pay attention to when studying the Forex trading conditions.