The Authority’ on Price How to calculate cross rate forex Trading. In 2016, Nial won the Million Dollar Trader Competition.
The Forex market comes with its very own set of terms and jargon. The currency exchange rate between two currencies, both of which are not the official currencies of the country in which the exchange rate quote is given in. This phrase is also sometimes used to refer to currency quotes which do not involve the U. For example, if an exchange rate between the British pound and the Japanese yen was quoted in an American newspaper, this would be considered a cross rate in this context, because neither the pound or the yen is the standard currency of the U. However, if the exchange rate between the pound and the U. The value of one currency expressed in terms of another.
The smallest increment of price movement a currency can make. Leverage is the ability to gear your account into a position greater than your total account margin. 100,000 position, he leverages his account by 100 times, or 100:1. To calculate the leverage used, divide the total value of your open positions by the total margin balance in your account. The deposit required to open or maintain a position. Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions.