worth of currency because you only have to post one percent ofthe purchase price as collateral. Another way of saying this is that you have$200,000 in buying power.With more buying power, you can increase your total return on investment with less cash outlay. To be sure, trading on margin magnifies your profitsand your losses.A detailed description on how to calculate profit and loss of leveragedtrades occurs in Chapter 8: The Calculating Trader.
The Trader’s NemesisAll traders fear the dreaded margin call. This occurs when the broker notifies thetrader that his or her margin deposits have fallen below the required minimumlevel because an open position has moved against the trader.Trading on margin can be a profitable investment strategy, but it is important that you take the time to understand the risks. You should make sure youfully understand how your margin account works. Be sure to read the marginagreement between you and your clearing firm. Talk to your account representative if you have any questions.The positions in your account could be partially or totally liquidatedshould the available margin in your account fall below a predetermined threshold. You may not receive a margin call before your positions are liquidated.Margin calls can be effectively avoided by monitoring your account balance on a very regular basis and by utilizing stop-loss orders (discussed later) onevery open position to limit risk. For ease of use, most online trading platformsautomatically calculate the profit and loss of a trader’s open positions.Margin CallsNearly all FOREX brokers monitor your account balance continuously. Ifyour balance falls below four percent of the open margin requirement,they will issue the first margin call warning, usually by an online popup message on the screen and/or an email notification. If your accountbalance drops below three percent of the margin requirement for youropen positions, they will issue a second margin warning. At two percent, they will liquidate all your open trades and notify you of yourcurrent account balance. These percentages may vary from broker tobroker.
5Chapter
Selectinga FOREX Broker
Caveat EmptorBefore selecting an Internet or online FOREX broker, the new investor shouldclosely examine the services that each candidate dealer offers and the policiesthat it mandates.Since the passage of the Commodity Futures Modernization Act of 2000,the CFTC’s Division of Enforcement has filed 41 FOREX cases in eleven states:14 in Florida; 10 in California; 6 in New York; 3 in Georgia; 2 in Utah; and oneeach in Michigan, North Carolina, Ohio, Oregon, Texas, and Washington. Thedefendants in these actions defrauded approximately 3,400 retail investors.These scam artists advertised continually on radio and television. They promised unrealistic profits on very modest investments. They offered bid/ask spreadsin excess of 30 pips while charging a $200 commission per trade.The novice trader must be aware of Off-Exchange Currency Dealers(derogatorily called “bucket shops”). When selecting a prospective FOREXbroker, find out with which regulatory agencies each dealer is registered, ifany. The FOREX market is billed as an “unregulated” market, and essentially it is. Regulation is typically reactive, occurring only after the damagehas been done.There are numerous safe and reputable FOREX brokers from which tochoose; consider your specific needs and likes/dislikes before making aselection.33
34
WHAT EVERY TRADER MUST KNOW
Broker ServicesOnline Trading PlatformNearly all FOREX brokers allow their clients to conduct trading over theInternet in a clear and comprehensible fashion. The backbone of any tradingplatform is, of course, the order entry process.Examine the dealer’s screen layout: It should include a bar chart of the currency pair being monitored, an account summary showing the trader’s currentaccount balance with realized and unrealized profit and loss, margin available,and any margin locked in active positions. A list of currently held positionsshould also be displayed on the same Web page, or at least be readily accessible.Most trading platforms are either in Windows or Java format; some dealers offer both versions. A few trading platforms are appearing with Flash.Some investors may prefer to use voice brokers to execute their trades asin the pre-Internet era. This service must be specifically mentioned in the broker’s list of services since telephone trading is a waning method of trading inthe new millennium.While the authors much prefer the online format, we highly recommendfinding a dealer who offers a voice backup—the Internet can do strange things,often at the wrong time.Charting PackagesSome dealers are now offering integrated charting and technical analysis packages with their dealing platform, or partnerships with charting services. Theseare definitely worth exploring if the charts or technical tools offered are of valueto your method of trading. The level of integration with the dealing platformalso varies and is worth understanding carefully.Here are a few to consider (there are more):• www.gaincapital.com• www.gftforex.com• www.refcofx.comSome of the charting services offering robust FOREX are:• www.tradestation.com• www.esignal.com• www.aspenres.comWe are told Trade Station will soon integrate with the dealing platform ofwww.rjobrien.com.
Selecting a FOREX Broker
35
Paper TradingNumerous dealers provide a “paper trading” service that allows the beginningtrader to become acclimated to the real market and “test” a given trading strategy without risk. These brokers provide a free demo account in which theinvestor places orders in a real-time environment but no money exchangeshands. These trades exist only on paper and are not executed by the broker.After a week or two of paper trading, the new trader can then assess his or herpotential for profit or loss in the “real” market and proceed accordingly.Micro-AccountsSome dealers offer very small “mini-accounts” for as little as $100, although wefeel even a mini-account should have at least a $1000 balance. Micro-accountsare a great way to get started and test your basic trading expertise and acumen.Even trading with very small amounts is much more telling than paper trading.But the broker you use for a micro-account may not be the one you want to usefor “real” trading.Online AssistanceThough not a requisite, some brokers offer education services and trainingcourses for the first-time trader. Also the trading platform should have a robustHelp directory on its main menu Web page. Additionally, each candidate brokershould list an email address for customer service queries.News ServicesBefore beginning a new trading session, the experienced trader will normally perusethe news articles that his or her broker has posted to a news articles Web page.Though this service is not requisite, it is very informative and may affect the trader’schoices for which currency pairs and which positions to take for that session.Chat RoomsMany dealers sponsor open chat rooms for their member clients that focus oncurrency trading. Many of the questions that a new trader has are frequentlyanswered in chat rooms. Be cautious of unsolicited trade tips in these chatrooms and on the discussion boards—or from anywhere, for that matter.Other ServicesOther services are up to the whim of the individual trader, such as multilingualplatforms, advanced charting, technical and fundamental analysis add-ins, and
36
WHAT EVERY TRADER MUST KNOW
various accounting system options. It is also wise to see with which regulatoryagencies the candidate broker is registered (CFTC, NFA, and so on). In addition, examining a broker’s FAQ Web page will guide the new trader through theservices and options available.
Broker PoliciesAvailable Currency PairsThe new trader should confirm that the prospective broker offers the sevenmajor currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD). Certain crosscurrency pairs (a pair in which neither currency is USD) may not be available,since this entails extra risk.Transaction CostsAs described earlier, transaction costs are calculated in terms of pips. The lowerthe number of pips required per trade by the broker, the greater the profit thatthe trader makes. Comparing pip spreads of a half dozen brokers or sowill reveal different transaction costs. One arbitrary rule of thumb is thatthe bid/ask spread for EUR/USD (the most frequently traded currency pair)should never exceed three or four pips, and a two-pip transaction cost ishighly preferable.Margin RequirementThe lower the margin requirement (and hence the higher the leverage), thegreater the potential for higher profits and losses. Margin percentages can varyfrom 1 percent to 10 percent.Low margin requirements are great when your trades are good, but not sogreat when you are wrong. Be realistic about margins and remember that theyswing both ways. In general, low margins are nice to have available, althoughyou may not normally want to take full advantage of them.Minimum Trading Size RequirementThe size of one lot may vary from broker to broker, spanning 1,000, 10,000,and 100,000 units. These brokers usually offer a mini-lot, which is one-tenth ofa lot. Ideally, a broker offers fractional unit sizes (called odd lots) to allow thetrader to select any unit size that he or she wants.
Selecting a FOREX Broker
37
Rollover ChargesRollover charges are determined by the difference between U.S. interest ratesand the interest rates in the corresponding country. The greater the interest ratedifferential between the two currencies in the currency pair, the greater therollover charge will be. For example, if the British pound has the greatest differential with the U.S. dollar, then the rollover charge for holding Britishpound positions would be the most expensive. Conversely, if the Swiss francwere to have the smallest interest rate differential to the U.S. dollar, thenovernight charges for USD/CHF would be the least expensive of the currencypairs. The whole rollover mechanism is discussed in detail in Chapter 8, onadvanced topics.Margin Account Interest RateMost brokers pay interest on a trader’s margin account. The interest rates normally fluctuate with the prevailing national rates. At least the equity in yourmargin account will be accruing interest if you decide to take an extended breakfrom trading.Trading HoursNearly all brokers align their hours of operation to coincide with the hours ofoperation of the global FOREX market: 5:00 PM EST Sunday through 4:00PM EST Friday. Confirm this when selecting a dealer.Other PoliciesBe certain to scrutinize a prospective broker’s “fine print” section to be fullyaware of all the nuances that a specific broker may impose on a new trader.There are several active forums and discussion groups on currency tradingon the Internet. Spend a little time in these forums reviewing what othershave experienced with certain brokers. Feel free to ask questions, too. Do notget addicted to the discussion groups and forums, however. Although they area great way to occasionally find information and share information, they are,for the most part, a distraction to the serious trader. The authors check inwith the top two or three boards about once a week for perhaps ten minuteseach, maximum.The premier board at this time is www.moneytec.com, but also worthy ofmention is www.global-view.com. Both of these boards accept paid advertising.Check in with these forums while doing your initial due diligence, thereafter ona periodic basis. Again, do not become addicted to them.
38
WHAT EVERY TRADER MUST KNOW
Broker Selection Process
• No broker/dealer is perfect. Having no centralized exchange makes theselection process very important; the total number of distinct platforms is now well over 100!• Start with at least three prospects so you may do comparables and perhaps negotiate if you are opening a larger account (typically over$25,000).• Ask for references with whom you can speak on the telephone.• Check the regulatory agencies in the country in which the brokerresides if the broker/dealer is regulated.• Go to the various FOREX discussion groups on the Internet. Look forinformation on that broker. Ask questions, too. But be careful—theperson answering you may be the broker or one of the broker’s “representatives.”• Requoting. This is the major complaint against online brokers. Itoccurs when the trading platform does not give you the quote youselect on the screen, but something else, not as good—perhaps asmuch as 10 pips difference. You’re not likely to find an online brokerwho doesn’t requote occasionally, but beware brokers who requoteoften, especially when you are winning!Requoting is a very much discussed topic today in the FOREX community. Because there is no centralized exchange it is going to happenfrom time to time. When reviewing the requoting of a broker/dealer itis important to ask 1) How often does it occur? and 2) When does it occur?If requoting happens in fast-moving markets, it’s probably the nature ofthe beast. If it happens whenever you have a big winning trade, beware.• Review all of the broker’s paperwork (typically downloadable from thebroker’s site). Compare it to others for wording, terms, and so on.• Send a list of email questions to each of your initial prospects—this isto get answers and to test for responsiveness.• Call the broker’s telephone number to see if voice contact is reliable.The authors would not personally deal with a broker who does notoffer a voice backup or customer service support line.• Compare especially: account minimums, costs (pip spreads), the handlingof account withdrawals (time period), and margin. Pips vary from currency pair to currency pair, the most popular having the lowest spread;two pips for the EUR/USD pair is not uncommon. Some dealers maycharge a small “lot fee” that can add up quickly, so be sure to ask if a dealerhas such a fee and what it is. Get hard copy printouts of everything.
Selecting a FOREX Broker
39
Broker Selection Process (continued)
• Finally, you will want to spend some time with the broker’s onlineDealing or Trading Platform paper trade, and then trade a miniaccount for 30 days. Most trading platforms are not bug-free—it’sextremely complicated software and real-time delivery over theInternet is not a small task.• Check the discussion boards for other traders’ experiences.
Finding the right broker/dealer is a critical part of the process. It is noteasy and requires some real work on your part. Do not pick the first one thatlooks good to you. Keep looking. Do not be necessarily put off by persistentsales representatives but be sure to shun high-pressure sales tactics.
Avoiding Fraudulent OperationsThere are several levels of FOREX dealers with online access:Bucket shops. These have essentially no connection to the real-world FOREXmarket. The identifying characteristic on most of these is that they heavily toutcurrency futures and options over spot FOREX.Book makers. These are perfectly legitimate in some countries and fine if youwant to simply place a “bet” on a currency. One Web site to explore iswww.deltaindex.com.
Top on your list should be:
1. Does the broker have a good recommendation?2. How did it score on the broker selection process?3. Do you feel comfortable with the trading platform? Is it reliable?4. Does the broker offer telephone and email means of communicationand trade back-up?5. Are costs in line with the market? Especially pip spreads and margins?6. What are the requoting experiences of other traders?
WHAT EVERY TRADER MUST KNOW
40
Retail market makers (RMMs). These represent the vast majority of online dealers. There is a wide spectrum amongst them with respect to their organizationalform and how much they actually connect directly to the FOREX market. Onesuch dealer is actually a U.S.–domiciled bank: www.cbfx.com.A few other RMMs are:•••••
www.refcofx.comwww.gftforex.comwww.saxobank.comwww.sbfx.netwww.gaincapital.com
Institutional market makers. These are very closely aligned with the FOREXinterbank market, and are great if you have enough for their minimum accountrequirement.Two examples are www.hotspot.com and www.fxall.com.Institutional FOREX. At the top of the heap is the Intranet-based trading system, EBS. This is actually a consortium of close to 200 banks and representswell over 50 percent of bank FOREX trading. You must be a bank to participate. For more, see www.ebs.com.It is still critical that traders investigate the integrity of prospective brokersas well as their services, costs, and trading platforms. Some traders jump fromone dealer to another in the blink of an eye. Don’t do it; rather, investigate thoroughly beforehand.
6Chapter
Opening an OnlineTrading Account
pening a new account with an Internet FOREX broker usually consistsof four simple steps: selecting an account type, registration, account activation, and confirmation. Consider opening micro or mini-accountswith two or three broker/dealers and ultimately consolidating your money to theone that seems to work best for you. Take time making a decision you can livewith: Don’t be rushed and don’t be afraid to ask lots and lots of questions! Butonce you decide on a dealer, try to stick with it unless you realize you’ve made avery big mistake.
O
Account TypesFOREX brokers offer individual and corporate accounts. There may also be different account types based on the size of the initial equities that a trader depositswith the broker. Read the fine print first.Many brokers offer managed accounts in which the dealer makes all thedecisions on which currency pairs to buy and sell and which trade sizes to transact. This is equivalent to depositing equities into some form of investmentinstrument (such as mutual funds) but with a higher risk factor. It also removesthe intrigue and emotional aspect of trading your private account.Make sure you are opening a FOREX spot account and not a FOREX forwards or futures account. Almost everyone uses the spot market, as it is easy to
41
WHAT EVERY TRADER MUST KNOW
42
TABLE 6.1
Account Registration Forms
Application formRisk disclosure statementConsent to conduct business electronicallyCustomer agreementW-9 tax form
rollover your position should you wish to hold it for more than a single sessionof trading. Also, most of the fraud in the FOREX game has been seen in the forwards and futures arena.
RegistrationThe required paperwork to register a new account varies from broker to brokerbut always includes the items shown in Table 6.1.These are usually provided in PDF (portable document format) formatand can be printed using your Adobe Acrobat program. A free download of thisgreat program is available at: http://www.adobe.com/products/acrobat/ readstep2.html.Discuss any questions on the telephone whenever possible and get answers,clarifications, changes, and promises in writing.
Account ActivationThe broker will email you the necessary steps to activate your new tradingaccount after receipt of your initial deposit and the required application forms.
Identification ConfirmationUpon account activation, you will have to confirm your identification by email.You will be assigned a user name and password that you use each time you entera trading session.Before signing and returning the broker’s application forms, be certainthat you feel comfortable with the following broker policies since you are entering a binding contractual agreement:
Opening an Online Trading Account
43
•••••••
The broker’s hours of operation.The bid/ask pip spread on major currency pairs.The amount of margin that the broker requires per trade.The minimum trading unit size.There are no hidden commission costs or other trading fees.The reliability of the trading platform.Charting and technical analysis services. These are either add-on orintegrated into the trading platform.• Requoting policy. Be sure to get this in writing.Last, never send the broker money that you consider non-disposable. Ifyou are too anxious about your money, you will not make good trading decisions. If this happens, trade down to a sleeping level.
7Chapter
Mechanics ofFOREX Trading
n this chapter, we discuss the variety of orders that may be placed into themarket. The basic rule of thumb, especially for novice traders, is to keep itsimple. Make certain you know which types of orders your broker/dealeraccepts and build your trading system accordingly. Conversely, if your tradingsystem requires complex order methodologies (we hope it does not), be sure thebroker you select can comfortably handle them.Different broker/dealers accept (and do not accept) different types oforders. Once you have developed your trading plan you will be able to determine which types of orders are “must haves” for you.
I
Order TypesBasic Order TypesThere are some basic order types that all brokers provide and some others thatare more esoteric. The basic ones are:• Market orders. A market order is an order to buy or sell at the currentmarket price. Remember in currency trading, you are buying or sellingone currency against another currency.• Limit orders. A limit order is an order placed to buy or sell at a certainprice. The order essentially contains two variables, price and duration.45
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WHAT EVERY TRADER MUST KNOW
The trader specifies the price at which he or she wishes to buy/sell a certain currency pair and also specifies the duration that the order shouldremain active.• Limit entry orders. Limit entry orders are executed when the exchangerate touches (but does not break) a specific level. The client placing alimit entry order believes that after touching a specific level, the ratewill bounce in the opposite direction of its previous momentum.• Stop-loss orders. A stop-loss is a limit order linked to a specific position for the purpose of stopping the position from accruing additionallosses. A stop-loss order placed on a buy position is a stop entry order tosell linked to that position. A stop-loss order remains in effect until theposition is liquidated or the client cancels the stop-loss order.• Take profit orders. A take profit order is a limit order linked to a specific position for the purpose of capturing accrued profits and liquidating the position. A take profit order remains in effect until the positionis liquidated or the client cancels the take profit order.
Esoteric Order TypesThe following more esoteric orders may not be available at all dealers and areusually just variations of other order types or involve a specified duration of time:• GTC (Good ’til canceled). A GTC order remains active in the marketuntil the trader decides to cancel it. The dealer will not cancel the orderat any time, therefore it is the customer’s responsibility to rememberthat he or she possesses the order.• GFD (Good for the day). A GFD order remains active in the marketuntil the end of the trading day. Because foreign exchange is an ongoingmarket, the end of day must be a set hour.• OCO (Order cancels other). An OCO order is a mixture of two limitand/or stop-loss orders. Two orders with price and duration variablesare placed above and below the current price. When one of the orders isexecuted the other order is canceled. Example: The price of EUR/USDis 0.9340. The trader wants to either buy 10,000 at 0.9395 over theresistance level in anticipation of a breakout or initiate a selling positionif the price falls to 0.9300. The understanding is that if 0.9395 isreached, the trader will buy 10,000 and the 0.9300 order will be automatically canceled.
Mechanics of FOREX Trading
47
Always read your broker’s documentation for specific order informationand to see if any rollover fees will be applied if a position is held longer than oneday. Keeping your ordering rules simple is the best strategy.Most online broker/dealers are not among the small pool of institutionalFOREX market makers. They can give instantaneous orders primarily becausethey are “throwing off ” bulk orders to larger dealers—sometimes market makers. The bid-ask spread is not only part of their profit picture, but protects themagainst fluctuations in the market.Once you decide which order types you need for trading (generally speaking, fewer is best), check out the brokers on your list to see which ones will bestaccommodate you.
Order ExecutionTraders using an online trading platform click on the “buy” or “sell” button afterhaving specified the underlying currency pair and the desired number of units totrade. The execution of the order is instantaneous. This means that the price seenat the exact time of the click will be given to the customer. See Figures 7.1 and 7.2.Placing a market order by phone is quite similar but usually takes a fewseconds more. The exact process is as shown in Table 7.1.
FIGURE 7.1
Market order request.
48
FIGURE 7.2
WHAT EVERY TRADER MUST KNOW
Limit order request.
Order ConfirmationOnline traders receive a screen message indicating confirmation of an orderwithin seconds after the trade has been executed, as shown in Figure 7.3.Traders can also cancel any limit order that has not been executed at anytime. Most brokers respond with a message similar to the one seen in Figure 7.4.Voice traders usually receive a verbal confirmation within 5 to 15 secondsafter placing the order.
TABLE 7.1
Order Sequence
1. A customer specifies the currency pair and the deal size to the dealer.2. The dealer gives a two-way price (bid and ask price).3. The customer takes one of the two prices (he or she may ask for a requote).4. The dealer confirms the trade. Under normal market conditions, dealers usuallyrespond to market orders in about 5 to 10 seconds at most. Assuming thecustomer deals immediately on the offered prices, the average phone deal canbe made in 10 to 15 seconds.
Mechanics of FOREX Trading
FIGURE 7.3
49
Order confirmation message.
Transaction ExposureAll online trading platforms are obligated to inform the investor of his or hercurrent status in the FOREX market. Most will display this critical informationin a window similar to the one seen in Figure 7.5.The abbreviation GTC in the Expiry (expiration date) column in Figure7.5 stands for “Good ’Til Canceled.”
FIGURE 7.4
Limit order cancellation.
WHAT EVERY TRADER MUST KNOW
50
FIGURE 7.5
Transaction exposure.
Summary
The basic order types (market, stop loss, and take profit) are usually allthat most traders ever need. Unless you are a veteran trader, do not designa system of trading requiring a large number of orders sandwiched in themarket at all times—stick with the basic stuff first.If you are using an online trading platform: before submitting anorder, close your eyes for a moment, then check all aspects of your orderbefore clicking “submit.” The two most common errors here are selecting“buy” (the default) when “sell” was intended and entering an incorrectnumber of units.Make certain you fully understand and are comfortable with yourbroker’s order entry system before executing a trade. Do not make a tradewith real money until you have an extremely high comfort level with thetrading platform and order entry system.
8Chapter
The Calculating Trader
ere is where the rubber meets the road. Take your time with this information, as it is necessary knowledge for all FOREX traders. We recommend that you do not even paper trade until you are completelycomfortable with pip values and calculating profit and loss for any pairs orcrosses you intend to trade.Profit and Loss (P&L) for every open position is calculated in real-time onmost brokers’ trading platforms. The information in this chapter enables tradersto track their own P&L tick by tick as the market fluctuates.
H
Leverage and Margin PercentSome brokers describe their gearing in terms of a leverage ratio and others in termsof a margin percentage. The simple relationships between the two terms are:Leverage = 100 / Margin PercentMargin Percent = 100 / LeverageLeverage is conventionally displayed as a ratio, such as 20:1 or 50:1. Inthe examples that follow which require leverage, we use only the number onthe left side of the ratio—that is, 20 or 50—since the number on the right sideis always 1.51
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WHAT EVERY TRADER MUST KNOW
Pip ValuesA pip is the smallest price increment that any currency pair can move in eitherdirection. In the FOREX markets, profits are calculated in terms of pips first,then dollars second. See Table 8.1.Approximate USD values for a one-pip move per contract in the majorcurrency pairs are shown in Table 8.2, per 100,000 units of the base currency.On a typical day, actively traded currency pairs like EUR/USD andUSD/JPY can fluctuate 100 pips or more. The above table is based upon a margin requirement of 100 percent (leverage = 1:1). To calculate actual profit (orloss) in leveraged positions, multiply the pip value per 100k times the leverageratio (margin percentage divided by 100).Note that the EUR/GBP cross rate pair in Table 8.2 uses multiplicationwith the USD spot price instead of division. This is because the USD is thequote (second) currency in the spot conversion pair.
TABLE 8.1
Single Pip Values
USD = Quote CurrencyEUR/USD
.0001 USD
GBP/USD
.0001 USD
AUD/USD
.0001 USD
USD = Base CurrencyUSD/JPY
.01 JPY
USD/CHF
.0001 CHF
USD/CAD
.0001 CAD
Non-USD Cross RatesEUR/JPY
.01 JPY
EUR/CHF
.0001 CHF
EUR/GBP
.0001 GBP
GBP/JPY
.01 JPY
GBP/CHF
.0001 CHF
CHF/JPY
.01 JPY
The Calculating Trader
TABLE 8.2Currencies
53
Full Lot Pip Values
1 Pip Value Per Full Lot (100,000 units)
EUR/USD
EUR 100,000 × .0001 = USD 10.00
GBP/USD
GBP 100,000 × .0001 = USD 10.00
AUD/USD
AUD 100,000 × .0001 = USD 10.00
USD/JPY
USD 100,000 × .01
USD/CHF
USD 100,000 × .0001 = CHF 10.00 / USDCHF spot (1.2335) = USD 8.11
USD/CAD
USD 100,000 × .0001 = CAD 10.00 / USDCAD spot (1.3148) = USD 7.61
= JPY 1,000 / USDJPY spot (105.50) = USD 9.47
EUR/JPY
EUR 100,000 × .01
EUR/CHF
EUR 100,000 × .0001 = CHF 10.00 / USDCHF spot (1.2335) = USD 8.11
= JPY 1,000 / USDJPY spot (105.50) = USD 9.47
EUR/GBP
EUR 100,000 × .0001 = CHF 10.00 × GBPUSD spot (1.8890) = USD 5.2
GBP/JPY
GBP 100,000 × .01
GBP/CHF
GBP 100,000 × .0001 = CHF 10.00 / USDCHF spot (1.2335) = USD 8.11
CHF/JPY
CHF 100,000 × .01
