ActivTrades: Currency Trading

An investor wants to try their hand at currency trading, but there is concern about losing money on fees and charges alone. With ActivTrades, investors can rest assured the money will be put to good use and not wasted on hidden fees and costs.

ActivTradesSpreads are the difference between the bid price and ask price on foreign currency. The spread is determined by the pip, calculation, or percentage in point.

Percentage in point is a common currency exchange rate fluctuation. Most major currencies are priced to four decimal places, and a pip is one unit of that fourth decimal point, or one-hundredth of a cent. Since currency is traded most often in lot sizes of 100,000, a rate change of one pip equals 10 units.

Most target spreads range from 0.8 to two pips or a little bit more for the major currencies. The target spread is 0.8 pips for euro-to-dollar transactions, and it goes up to 1.7 pips for transactions involving New Zealand and United States dollars, or euros and swiss francs.

The target spread goes up for transactions involving minor currencies. For example, a spread of 2.4 pips is the target for British pound/Japanese yen transactions, and it goes up to 5.2 pips for transactions involving the New Zealand and Canadian dollars.

The third level of currency transaction involves exotics. Exotic currency doesn’t mean the currency is beautiful or luxurious to look at. It simply means there may be market or liquidity restrictions on some of these currencies. For that reason, the target spread value can rise as low as 5.5 pips for Australian/New Zealand dollar transactions to as high as 100 pips for currency swaps between the United States dollar and Brazilian real.

Keep in mind this does not mean the real is a bad investment. It just means the market for the Brazilian real isn’t as big as it is for the United States dollar, the euro, the Canadian dollar or other large-market currencies.

There are risks involved with currency trading, especially when it comes to the exotic markets. That is why limit and stop levels are placed into effect with companies like ActivTrades. Limits and stops are set at a minimum of two pips. These levels are the minimum number of pips between the current price and a pending limit or stop order.

Now you know more about the pip system go ahead and take a risk. For further information; get in contact with ActivTrades today.


ActivTrades | Forex trading

ActivTrades is a Forex trading company that specialises in Spread Betting and CFDs. The company offers some of the most innovative trading platforms available and special features such as automated trading, a unique rewards program and 24 hour customer support from trading experts. ActivTrades has been in the trading business since 2001 when the company first opened their headquarters in Switzerland. Since then ActivTrades has managed to become a worldwide leader when it comes to Forex trading. In 2005 the company relocated their headquarters to London, England. This move allowed ActivTrades to provide their many services to customers located all throughout Europe.

ActivTrades offers their customers access to modernized online trading platforms MetaTrader 4 and MetaTrader 5. Customers may access these platforms 24 hours a day using their home computer, smart phone or other Wi-Fi enabled device. Clients who have a Classic account may use the MT4 trading platform while Advantage account holders can use the newer MT5 platform.

The investment experts who work for ActivTrades understand the importance of customer satisfaction in the business world. They strive every day to provide optimal customer support and security to each individual who uses their services. All transactions made through ActivTrades are protected by client money insurance policy underwritten by Lloyd’s of London. Most of ActivTrades clients are eligible up to £500,000 worth of protection when funding their accounts or at the point of sale (terms and conditions apply). ActivTrades is the first brokerage company of its kind in the United Kingdom to provide this type of protection to their valued customers. Treating customers with respect is another reason why ActivTrades has been able to rise to the top in such a short amount of time.

Customers who use ActivTrades services are eligible to receive points for each successful transaction. These points may be used to redeem a special gift from the company. This is all part of the Rewards Programme that the investment company provides. No additional information is needed to join the program and customers may start receiving points as soon as they fund their account. Some of the valuable gifts that ActivTrades customers can receive just by doing business with this online trading company include an ACER®  Chromebook, and iPad Retina tablet wit 16 GB of storage space, and a brand new Kindle Fire HD.
Leveraged products are high risk, losses can exceed your initial deposit.

Terms and Conditions apply to the ActivTrades Rewards Programme. The ActivTrades Excess of FSCS Insurance is subject to the Terms and Conditions of the policy wording.

iPad is a trademark of Apple Inc., registered in the U.S. and other countries. ACER is a trademark of Acer, Inc. in the U.S. and other countries.

ActivTrades PLC is authorised and regulated by the Financial Services Authority, FSA registration number 434413.