What Is Spread Widening in Forex?
Spreads widen when liquidity thins: at rollover, in quiet hours, around news and in crises. Why it happens, how it affects stops and margin, how to plan for it.
CFD education by market group.
Spreads widen when liquidity thins: at rollover, in quiet hours, around news and in crises. Why it happens, how it affects stops and margin, how to plan for it.
Spread cost = spread in pips × pip value × lots. Worked examples on EUR/USD and GBP/JPY, how spreads change by session and news, and why it adds up.
Forex rollover moves open positions to the next value date at 5 p.m. New York time, applying the interest rate gap. How it works and why Wednesday is triple.
Forex P&L = pips gained or lost × pip value × lots, converted to your account currency. Worked examples for a long EUR/USD and a short USD/JPY trade.
Position size in lots = risk amount ÷ (stop in pips × pip value per lot). Worked examples for EUR/USD and USD/JPY on a $5,000 account risking 1%.
Fourteen forex myths fact-checked and rated, from easy money and high leverage to guaranteed stops, gap-proof majors and brokers who always win trades.
Standard, mini and micro lots are 100,000, 10,000 and 1,000 units. How lot size sets pip value and risk, with examples for a 30-pip stop on EUR/USD.
Effective leverage = position value ÷ equity. On a $2,000 account, 0.5 lots of EUR/USD is 27.5:1 and a 100-pip move is 25% of the account. Worked examples.
One six-position account audited for correlation mistakes: stacked dollar bets, fake hedges, hidden yen in crosses, stale links and crisis risk.
Floating currencies are priced by markets; pegged ones are held near a target by a central bank. How each works, with the Swiss franc floor and Hong Kong peg.
On the ex-dividend date a share usually drops by about the dividend; long CFDs are credited and shorts debited. A worked example with 200 CFD shares.
EV/EBITDA compares a company's whole value, including debt, with operating earnings before depreciation. How to calculate it and when it beats P/E.