Trading Terms at Gerchik & Co
We have cut down the trading expenses so that you can make more money! Gerchik & Co offers floating spreads from 0.0 pips, minimum swaps and fixed commission fee.
How to make money using spread?
Spread is the difference between the prices at which you are willing to buy and sell the same asset. It is formed on the principle of the currency exchange office where U.S. dollars are bought more cheaply and sold more expensively. The difference is that Forex spread changes every single second. In stable market environment, bid and ask prices may be the same.
At Gerchik & Co, you can make money on this. The trade aggregator selects the best quotes from the liquidity-supplying banks, the spread between which is zero. This is why the trades are opened in the black and not in the red as it happens in case of fixed indicators.
Why is there a commission fee?
Gerchik & Co charges a commission fee for each traded lot. This is a fee for entering the interbank market and trade processing at high speed and at the best prices. It ranges from $7 up to $10. The bigger the deposit, the smaller the commission fee.
What you should be aware of the swaps
A swap is a fee charged in points by quote providers for holding positions open overnight. Forex swap rate can be either positive or negative. The swap size depends on whether you are buying or selling an asset. By positive swap, a few points are added to the profit, whereas by the negative swap you lose a portion of your profit.
How to calculate swap
The traders who are holding trades open longer than a day need to know the swap size. In case of intraday trading, this indicator is irrelevant. Swap can be either short or long. Long swap is accrued when asset is purchased, and short one is accrued when it is sold. To learn how many points are charged or accrued per each instrument, please see the table above.
Swap Calculation Formula
Type of swap in pips
Lots * Swap * Pip price (last symbol in the quote) = Size of swap accrued
Type of swap in percentage
Lots * Swap / 100 / 360 * Position price = Size of swap accrued
How it works
The positions which are held open from 23:59:59 to 00:00:00 are carried over into the next day. For this, a fee is charged by the liquidity-providing banks. It is formed as a loan interest and depends on the rates established by the Central Bank. In different countries, interest rates may vary greatly, which is why the trader gets extra payment from the bank for some national currencies or is forced to give away a portion of his profit for the others.
A positive swap is typically accrued on long positions. For each day when a position is carried over, a trader can additionally earn from 0.14 to 64 points. In 60% of cases, a negative swap is charged on short positions. This is a vital aspect to be kept in mind when positions are held open by the trader for weeks. The points charged by the bank daily get accumulated and may have a direct impact on the trading outcome.
Trading terms and conditions at Gerchik & Co are geared specifically towards the traders. Company’s customers save on swaps, spreads and get the best prices for profit enhancement. Join the ranks of those who are already making money in Forex. Register and replenish the deposit to trade smoothly.
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