spreads/pairs

What is a pip?

Pip stands for point-in-percentage. 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).

Spreads

Fixed spreads are a way for an FCM to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have “no commission” that should be a red flag. So how are they getting paid? Its simple... they are making money with the built-in markup/markdown in the spread.

Our FCM, MB Trading Futures, has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.

Currency Pairs

In the Forex market, trading is always in currency pairs, such as EUR/USD or USD/JPY. The base currency-the first currency listed in the currency pair-is the basis for the buy or the sell. As an example, the US Dollar is the base currency for USD/JPY (US Dollar/Japanese Yen). The current bid/ask price for USD/JPY could be 107.20/107.23, which means you could buy $1 US for 107.23 Japanese Yen, or sell $1 US for 107.20 Japanese Yen.

Symbol	Currency Pair	Spreads as low as
EUR/USD	Euro Dollar / United States Dollar	1/10 pip
EUR/AUD	Euro Dollar / Australian Dollar	1/10 pip
USD/JPY	United States Dollar / Japanese Yen	1/10 pip
GBP/USD	Great Britain Pound / United States Dollar	1/10 pip
USD/CHF	United States Dollar / Swiss Franc	1/10 pip
USD/CAD	United States Dollar / Canadian Dollar	1/10 pip
AUD/USD	Australian Dollar / United States Dollar	1/10 pip
EUR/GBP	Euro Dollar / Great Britain Pound	1/10 pip
EUR/JPY	Euro Dollar / Japanese Yen	1/10 pip
EUR/CHF	Euro Dollar / Swiss Franc	1/10 pip
GBP/JPY	British Pound / Japanese Yen	1/10 pip
EUR/SEK	Euro Dollar / Swedish Krona	1/10 pip
EUR/CAD	Euro Dollar / Canadian Dollar	1/10 pip
USD/MXN	United States Dollar / Mexican Peso	1/10 pip
USD/SEK	United States Dollar / Swedish Krona	1/10 pip
USD/DKK	United States Dollar / Danish Krone	1/10 pip
USD/NOK	United States Dollar / Norwegian Krone	1/10 pip
CHF/JPY	Swiss Franc / Japanese Yen	1/10 pip
GBP/CHF	Great Britain Pound / Swiss Franc	1/10 pip
CAD/JPY	Canadian Dollar / Japanese Yen	1/10 pip
AUD/JPY	Australian Dollar / Japanese Yen	1/10 pip
NZD/JPY	New Zealand Dollar / Japanese Yen	1/10 pip
NZD/USD	New Zealand Dollar / United States Dollar	1/10 pip