The dealing desk is open between Sunday 14:30 to Friday 16:30 Eastern Standard Time (GMT-5).
What is Pip (or points)
The term used in currency market to represent the smallest incremental move an exchange rate can make. Depending on context normally one basis point (0.0001 in the case of EUR/USD, GBP/USD, USD/CHF and 0.01 in the case of USD/JPY).
How to Calculate Profit/Loss
The equation for EUR/USD, GBP/USD, and AUD/USD is as follows:
P/L = (Opening Rate – Closing Rate) x Lot Size x Number of Lots
The equation for USD/JPY, USD/CHF and USD/CAD is as follows:
P/L = (Opening Rate – Closing Rate) / closing Rate x Lot Size x Number of Lots
For standard account, 1 pip results $10 profit/loss in EUR/USD and GBP/USD, approximately $9 in USD/JPY, $8 in USD/CHF.
For mini account, 1 pip result $1 profit/loss in EUR/USD and GBP/USD, approximately $0.9 in USD/JPY, $0.8 in USD/CHF.
Rollover/Interest Policy (Premium)
In the spot forex market trades settle in two business days. If a trader sells 10,000 euros on Tuesday, the seller must deliver 10,000 euros on Thursday unless the position is held open and rolled over to the next value date. As a service to our traders, FX Solutions automatically rolls over all open positions to the next settlement date at 5:00 PM Eastern Standard Time. Roll over involves exchanging the expiring position for a position expiring the following settlement date. The positions being exchanged are not valued at the same price. If a trader is long the currency bearing the higher interest rate, the position “being sold” is worth more than the position being acquired. The reverse is also true; if a trader is short the currency bearing the higher interest rate, the trader is acquiring a position worth more than the one “being sold”. The amount of the difference varies based on the currency pair, the interest rate differential between the two currencies, and fluctuates day to day.
At 5:00 PM each day, funds are subtracted from or added to accounts with open positions because of this automatic roll over.
On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position is three times the usual amount. This “3-Day” rollover accounts for settlement of trades through the weekend period. When there are bank holidays in either settlement country the normal roll schedule does not apply.