Trading Conditions

Our Trading Conditions

We are committed to providing our clients with the best trading conditions and offer state-of-the-art trading infrastructure and execution speeds enabling our traders to gain a competitive edge.

  • Tight spreads from as low as 0 pips
  • Flexible margin and leverage up to 500:1
  • Swap-free trading account.
  • Scalping and hedging allowed
  • Trade forex and metals
  • The online account management portal
Understand our trading conditions in details:

Spreads

  • What is a Spread?
    Essentially, the spread is the difference between the buy (ask) and the sell (bid) price quoted for an instrument. Spread is one of the key costs involved in Forex and CFD trading – the tighter the spread is, the better value you’re getting as a trader.
  • How is the spread calculated?
    Essentially, the tighter the spread, the lower the cost of trading. The wider the spread, the higher it costs.
    For example, let’s say EURUSD is quoted with a buy price of 1.0984 and a selling price of 1.0983. The spread can be calculated by subtracting 1.0983 from 1.0984 – giving a total spread of 0.0001 or 1 pip.
    At Lucror Ltd., prices are quoted up to 5 decimal points.

Margin Level

  • What is margin?
    One of the main components behind trading Forex is that it is normally undertaken on the basis of margin trading or trading with leverage. The Forex market offers some of the highest leverage (and therefore low margin rates), making it an extremely attractive proposition to traders.
  • Margin
    Margin can be thought of as the deposit required to open and maintain positions. This is not a fee or a transaction cost but a portion of your account equity set aside and allocated as a margin deposit. Margin is normally expressed as a percentage of position size (e.g. 2% or 5%).
  • Leverage
    Leverage involves borrowing a certain amount of money needed to gain exposure to a particular market, with a relatively small deposit. Leverage allows you to take a position of much higher value than the monies deposited in your account. It is commonly expressed as a ratio.
  • How do they work?
    Let’s take the following example:
    You have a trading account with Lucror Ltd. with a balance of $10,000.
    If you have an account leverage of 1:1 and wish to use $1,000 on one single transaction as the margin, then you will have exposure of $1,000 in base currency ($1,000) = 1 x $1,000 = $1,000 (trade value). Meanwhile, if you have an account leverage of 100:1 and wish to use the same amount of margin on a single transaction ($1,000), then you will have exposure of $100,000 in base currency ($1,000) = 100 x $1,000 = $100,000 (trade value).
    The concept here is that you have been temporarily given the necessary credit to open the transaction that you are interested in making. Without this margin, you would only be able to buy or sell transactions of $1,000 at a time.
    Thus, the margin requirements will vary depending on your leverage ratio, or in other terms, higher leverage equals to a lower margin requirement.
  • How to check leverage?
    At Lucror Ltd. ratio from 1:1 all the way up to 200:1.
    To find out the current leverage on your account, simply go to the Client Portal area and your account leverage will be shown next to your login numbers.
  • How to choose leverage?
    Your trading style will greatly dictate your use of leverage and margin.
    It is imperative to understand that trading with leverage can affect your trading experience both positively and negatively as both profits and losses are dramatically amplified. Trading with higher leverage ratios may not be suitable for all types of traders and may be too risky for some.
    In order to help traders in minimizing their risks, we have specific leverage restrictions in place (see table).
    To see how much leverage you can use on your trading account, please refer to this information. It is there to guide you on the available leverage options. If you wish to change the leverage ratio on your Lucror Ltd. trading account, you can do it easily either by submitting a request through the Client Portal area or by emailing us at support@lucrorltd.com.
    Again, higher leverage ratios may not be suitable for every trading style. If you are looking to trade with higher leverage, please remember: leverage is a double-edged sword. Yes, it can assist in opening a larger trade size, but thus amplifies gains and losses.

Swap Rates

  • What is a swap rate?
    Swap rates are affected by market conditions and the interest rate of the affiliated countries of the chosen Forex currency pair. Rates are released weekly by the financial institutions we work with and are calculated based on the risk-management analysis.
  • Important Elements of Swap Rates
    1: Swap rates are applied only when there are positions kept open overnight.
    2: Swap rates are applied at the end of the trading day or at 00:00 platform time.
    3: Swap rates are calculated in points and can be positive or negative depending on the interest rate of the two currencies.
    4: Swap rates are calculated and applied on every trading night, however, on Wednesday night, swap rates are charged at triple the usual rate to account for the weekend. (Standard 2 day settlement for all transactions)
  • Lucror Ltd. Latest Swap Rates
    To view our most up-to-date swap rates, please refer to the Market Watch panel in our MetaTrader 4 trading terminal. Simply right-click on any instrument in the ‘Market Watch’ section, then left-click on the ‘Symbols’ option from the drop down menu. Select the currency pair you desire from the popup window then left-click on the ‘Properties’ button – a new window will open that shows the long and short swap rate for the pair selected. Download the MT4 Demo Platform.

Slippage Policy

  • What is Slippage?
    In general, slippage refers to the difference between in price between the requested price and the filled price.
    A ‘gap’ in the markets refers to the situation where there seems to large move in price with no smaller incremental moves in the tradable prices and typically occurs under one of these circumstances:
    1. During illiquid market conditions – either over a weekend or a break in the trading hours.
    2. During volatile market conditions – usually around the release of major economic news event such as interest rate.
    It is common knowledge among experienced traders that slippage occurs naturally and all markets will be subject to slippage from time to time. It is usually seen during periods of extremely high or low volatility and during key news releases or during off-market hours and can work both ways – positively or negatively.
  • When does slippage occur?
    Extremely High or Low Volatility
    Low Liquidity
    Rapid Price Fluctuation
    Off Market Hours
    Key News Releases
    Slow Execution Speed
  • How does Lucror Ltd. treat slippage?
    We believe in treating our clients fairly and equitably. We treat all Forex slippage scenarios exactly the same way as any financial exchange – this means Lucror Ltd. does not interfere in the execution of client trades and the prices you receive and are executed and reflect the best possible prices received by Lucror Ltd. from our counter party.
  • Example Of Forex Slippage
    The price of AUD/USD was 0.7115. After analyzing the markets, you speculate that it is on an upward trend and open a long position of one standard lot on the AUD/USD at the current price of 0.7145 – expecting to execute at that same price of 0.7145.
    The market follows your speculation but goes past your execution price and up to 0.7155 very rapidly. Because your expected price of 0.7145 is not available in the market, you’re offered the next best available price. For the sake of the example, let’s say the price is now 0.7140.
    In this case, you would experience positive slippage: 0.7145 – 0.7140 = 0.0005, or +5 pips.
    However, let’s say your trade was executed at 0.7150, you would then experience negative slippage: 0.7145 – 0.7150 = -0.0005, or -5 pips.

 

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