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World Markets
 

Forex

Trade on the most liquid financial market worldwide.

 

The forex market is more liquid than any other financial market as it opens to participants globally and at all times, making its trading volume the highest with a turnover of US$ 5 trillion daily. Foreign exchange is often referred to as forex or FX, and is the domain in which the exchange of money between two countries takes place at a mutually agreed rate.

Forex is an Over-the-Counter Market (OTC)

Each trade does not go through an exchange and forex trading is settled "on the spot", as opposed to at a set date in the future. Forex gives options to enter a buy or sell trade whenever, without restrictions, offering opportunities to gain from short-selling currencies.

Trade with Leverage

Leverage gives the ability to hold larger positions than the initial deposit, allowing traders to hold positions with only a fraction of the value required. With the larger tradable fund in your platform for trading, you are able to trade more than what you have initially deposited.

 

Forex Contract Specifications Details

Spread

Blackwell Global's typical spreads apply under normal forex trading conditions, and are derived from the top international banks.

 

View our competitive spreads under normal market conditions.

Pair Spread Pair Spread Pair Spread
AUDCAD 4.6 AUDCHF 4.8 AUDJPY 4.3
AUDNZD 6.3 AUDSGD 6.5 AUDUSD 3.1
CADCHF 4.5 CADJPY 4.4 CHFJPY 4.8
CHFSGD 7.6 EURAUD 4.7 EURCAD 4.8
EURCHF 3.4 EURGBP 3.2 EURJPY 3.3
EURNZD 7.0 EURSGD 7.1 EURUSD 2.2
GBPAUD 5.1 GBPCAD 5.7 GBPCHF 5.2
GBPJPY 4.7 GBPSGD 8.3 GBPUSD 2.8
NZDJPY 4.9 NZDUSD 4.2 SGDJPY 14.5
USDCAD 3.5 USDCHF 3.1 USDJPY 2.8
USDSGD 4.3

Trading Hours

The forex market remains open for 24 hours a day, 5 days a week. Trading will be continuous between the standard trading hours for all currency pairs.

 
Server Time (GMT+1): Open from Sunday 23:00 | Close on Friday 23:00
* Our Server Time is currently set to GMT+1 due to Europe Daylight Savings changes.
 

Forex Pricing

Blackwell Global quotes currency pairs to the 5th decimal place (Japanese Yen are quoted to the 3rd decimal place). This allows accuracy and transparency in our price offerings compared to a 4-digit pricing where trading figures are rounded up.

 

Lot Size Specification

A standard lot for forex represents 100,000 units of the base currency. The minimum required lot is one micro lot, which is 0.01 of a standard lot or 1,000 units of the base currency.

 

Order Size

Transactions above the minimum size can be in fractions of a contract.

  • The minimum size: 0.01 of one contract, or the equivalent of 1,000 units of the base currency.
  • The maximum size: 100 lots can be placed depending on market availability. However, this may be subjected to slippage.
 

Trading in Different Currencies

Profit and Loss will be automatically calculated in your default currency using post rate for conversion.

 

Leverage

Leverage allows you to hold a larger position than the initial cash deposit. Your initial outlay is supplemented to increase the value of your underlying investment. The higher the leverage, the larger the position the trader can execute for the same amount of the initial deposit.

For example, a client using 100:1 leverage could hold a position in the forex market of $100,000 with a margin of $1,000. For a 200:1 leverage, the client would need a $500 margin to hold the same position.

Leverage increases the potential of high returns when the market moves in their favour. However, please note that leverage will act against you when the market moves in the opposite direction to your prediction.

 

Leverage Levels

Different leverage levels apply to different account types.

 

Margin Requirement

When an investor opens an account with a broker, an initial deposit is required in order to open a position in the market. The required cash deposit will act as a deposit to cover any credit risk. Depending on the agreement, the investor could be able to leverage up to a certain limit.

 

The margin requirement for a forex trade is calculated using the following formula:

Margin = (Lot Size * Contract Size * Opening Price) / Leverage
 

The examples below are based on a Standard/Classic account with a leverage of 100:1.

Forex

Margin requirement for one standard contract position in EUR/USD at 1.2500 is calculated as follows:

Margin = (1 * 100,000 * $1.2500) / (100) = $1250.00

Spot Gold

Margin requirement of one standard contract position in Gold at 1579.01 is calculated as follows:

Margin = (1 * 100 * $1579.01) / (100) = $1579.01

Spot Silver

Margin requirement for one standard contract position in Silver at 28.70 is calculated as follows:

Margin = (1 * 5000 * $28.70) / (100) = $1435.00

Note: Interest is not required to be paid on the borrowed amount, but if the investor decides to hold his position overnight, interest will be charged as the rolled over rates on the total positions held.

Margin Call

Margin Call is a level set by a brokerage that defines the minimum amount of money required to trade in the market. When your account falls below the margin call level, you will need to make an additional deposit to maintain your positions. Alternatively, you can close some of your positions to reduce your required margin. At Blackwell Global, Margin Call is set at 120%.

 

Stop Out Level

In the event you are unable to maintain sufficient funds in your account after hitting Margin Call, and if your account value depreciates to the Stop Out level, your positions will be closed automatically to prevent further loss to your capital. At Blackwell Global, Stop Out level is set at 80%.

Swaps

Often referred to as Rollover Interest, swaps are charged when holding onto a position overnight due to the difference in interest rates between the base currency and the quote currency.

Blackwell Global deals forex trading on a "spot" basis. All trades are settled in two business days from inception as per market convention. Swaps are automatically calculated and settled at 21:59 GMT (Server Time 22:59) on a daily basis and Blackwell Global does not arrange for physical delivery. Any open positions held from Wednesday to Thursday on a trade date basis will be charged three times the value. The extra payment is to cover the interest that would normally have been charged on Saturday and Sunday when the market is closed.

 

Forex rollover interest table

Pair Long Rate (Pips) Short Rate (Pips) Pair Long Rate (Pips) Short Rate (Pips)
AUDCAD 0.16515 -0.54891 AUDCHF 0.28830 -0.81600
AUDJPY 0.22324 -0.64022 AUDNZD -0.12166 -0.00575
AUDSGD 0.06983 -0.20025 AUDUSD 0.06493 -0.23098
CADCHF 0.13950 -0.47534 CADJPY 0.05741 -0.26231
CHFJPY -0.42794 0.11303 CHFSGD -0.96788 0.41198
EURAUD -1.32913 0.49028 EURCAD -0.71422 0.19894
EURCHF 0.03311 -0.24031 EURGBP -0.28072 0.07406
EURJPY -0.26119 0.06124 EURNZD -1.54663 0.54758
EURSGD -1.02550 0.22635 EURUSD -0.65894 0.24968
GBPAUD -1.10331 0.38839 GBPCAD -0.34547 0.04911
GBPCHF 0.17966 -0.62959 GBPJPY 0.02196 -0.27440
GBPNZD -1.32116 0.44153 GBPSGD -0.50063 0.12915
GBPUSD -0.48528 0.15098 NZDCAD 0.16706 -0.58206
NZDCHF 0.27559 -0.81469 NZDJPY 0.21806 -0.65419
NZDUSD 0.07406 -0.26506 SGDJPY 0.08411 -0.43581
USDCAD 0.07283 -0.35859 USDCHF 0.27919 -0.83128
USDJPY 0.17134 -0.55641 USDSGD -0.04428 -0.26657