Ox Securities offers some of the tightest spreads in the market today.
Trade with Ox Securities on some of the tightest spreads in the market today.
The global foreign exchange market is one of the fastest and most exciting financial markets. The FX Market is by far the most liquid market in the work with trillions of dollars changing hands every day.
One of the ways you pay for trading in the market is through the spread, which is the difference between the bid and the ask of the instrument you are trading. When the spread is tight, your trading cost reduces.
Wide spreads can be the result of low liquidity or high volatility. Exotic pairs that are not as frequently traded will typically have wider spreads.
Low spreads can be an indication of high liquidity or lower market volatility. Spreads are typically lower in market sessions and outside of economic news announcements.
For example, lets say the bid/ask price of AUDUSD is 0.7103/0.7104. Here, AUD is the base currency and USD is the quote currency. In this example, you can buy AUDUSD at 0.7104 and sell at the lower price of 0.7103.
The difference between these two prices is the spread, and this is essentially the cost of your trade. The spread in this example is 0.7104-0.7103 = 0.0001.
Let’s say you decide to buy 200k AUD/USD because you think the price of AUD will rise vs the USD.
Your cost of this trade would be:
0.0001 x 200,000 = $20
In another example, lets say you decide to sell 10k AUDUSD because you think the price of AUD will fall
Your cost of this trade would be:
0.0001 x 10,000 = $1
As a trader, trading with low spreads can be essential to trading a profitable strategy. Many traders have had the experience of having their stop loss hit by half a pip only to have the market reverse back in their favour. It is possibly the most frustrating experience a trader can have and so by trading with tighter spreads, or by building the cost of your trade into the commission, you can often hold onto that trade for another half a pip, which can be the difference between a winning or losing trade
3 account types
Trade the global markets
with spreads from 0.0 pips
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Risk Warning: The information contained on this website is general in nature and does not constitute advice or a recommendation to act upon the information or an offer. The information on this website does not take into account your personal objectives, circumstances, financial situations or needs. You are strongly recommended to seek independent professional advice before opening an account with us and/or acquiring our services/products.
Before you decide whether or not to invest any products referred to on this website, being over the counter (OTC) derivatives, it is important for you to read and consider our Client Agreement, and Terms and Conditions (T&C), and ensure that you fully understand the risks involved. Fees, charges and commissions apply. OTC derivatives, including margin foreign exchange contracts and contract for differences, are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone. You may incur losses that are substantially greater than your initial investment. You do not own, or have any rights to, the underlying assets which the OTC derivative is referring to. You should only trade with money you can afford to lose. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity.
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