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Forex Trading Conditions
Target Bid/Ask Spreads
Our target bid/ask spreads listed are our best possible target spreads used in normal market conditions. In quiet market conditions, the spread may be even narrower but in periods of volatile markets, the spread may be increased and auto-execution disabled. For certain categories of clients, the spreads may in general be wider by up to 2 pips. The spreads applicable to your account will be displayed on your GlobalReach Markets platform. Please consult GlobalReach to obtain further information about our spread range and its implications to your account.
Margin Requirements
Forex is traded on margin, enabling you to leverage a small margin deposit for a much greater market effect where:
- First USD 25K margin rates apply to the first USD 25,000 (or equivalent) of your investment collateral
- Normal margin rates apply to all investment collateral over USD 25,000 (or equivalent)
- Weekend margin rates apply from 16:00 on Friday to 17:00 on Sunday GMT and on non-banking days
Note: Margin rates are higher over the weekends.
Auto-executed Trades
Major currency trades can be auto-executed for amounts below the auto-execution limit. Auto-executed trades are automatically accepted. For trade sizes over the auto-execute limit and in volatile market conditions, the trade must first be approved by a dealer. This process normally takes just a few seconds.
Note: These are typical auto-execute limits that can change over the day, depending on market conditions and available liquidity.
Ticket Fees
For Forex trades below the Ticket Fee Threshold listed, a small ticket fee of USD 10 is added to the trade to cover administration costs.
Margin Calls
You must maintain the margins listed in your account at all times. If the funds in your account fall below this margin, you will be subject to a margin call to either deposit more funds to cover your positions or close positions – normally you will be notified through our trading platform and via email. If your margin situation is not remedied, we may close positions on your behalf.
Forex Trading Hours
Your GlobalReach trading account is open for Forex trading from Monday 05:00 Sydney local time to Friday 17:00 New York local time.
Positions held until their Value Date
Spot Forex positions held at the end of the business day before their Value Date will be rolled over to a new Value Date on a Tom/Next basis. As part of the rollover, positions are subject to a swap charge or credit based on the LIBOR/LIBID interest rates of the two traded currencies with an added markup of +/- 0.25% plus an interest component of LIBOR/LIBID +/- 0.75% for any unrealized profit/loss on the position.