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Knowledge base: ECN How to Calculate ECN Commission
Posted by on 17 February 2014 02:34 PM

The round-turn commission for positions with volume of 100,000 units of Base Currency (BC) or Underlying Asset (UA) is equal to 5 units (for round turn) of the base currency or underlying asset (3.6 units (for round turn) of the Base Currency or Underlying Asset for ECN accounts with Net Deposit over AUD 25,000 and 10 units for Net Deposit under AUD 1,000).

1. #### Let's consider the detailed commission calculation for currency pairs:

• where USD is the quote currency:

• Contact size = 100,000 BC units
• 1 unit of the BC = 1 GBP for GBP/USD, 1 EUR for EUR/USD etc.
• Commission = 5 units of the BC for the volume of 100,000 BC
• Traded volume (in units of BC) = 100,000 × V (in lots)
• Traded volume (in USD) = 100,000 × V (in lots) × Price

The definition implies, that commission in USD for the traded volume of 100,000 BC (1 lot) is:

5 BC units = 5 × Price (of the currency pair)

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0,005% of the traded volume in USD: where Price = the BID Price for SELL positions or the ASK Price for BUY Positions.

• where USD is the base currency:

• Contact size = 100,000 USD
• 1 unit of the base currency = 1 USD for USD/CHF, etc.
• Commission = 5 units of the BC for the traded volume of 100,000 BC
• Traded volume (in units of BC) = 100,000 × V (in lots)

The definition implies that commission in USD for the traded volume of 100 000 base currency units (1 lot) is 5 base currency units.

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0.005% of the traded volume in USD: where Price = the BID Price for SELL positions or the ASK Price for BUY Positions.

• for crosses no USD (the base currency in the cross pair is quoted directly against USD):

• Contact size = 100,000 base currency units
• 1 base currency unit = 1 GBP for GBP/JPY, 1 AUD for AUD/CAD etc.
• Commission = 5 base currency units for the volume of 100,000 base currency units
• Traded volume (in BC units) = 100,000 × V (in lots)
• Volume (in USD) = 100,000 × V (in lots) × Price (BC/USD)

The definition implies that commission in USD for the traded volume of 100,000 BC (1 lot) is:

5 BC units = 5 × Price (BC/USD)

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0.005% of the traded volume in USD: where Price = BC/USD BID Price for SELL positions or BC/USD ASK Price for BUY Positions, when the base currency in the cross pair is quoted directly against USD.

• for crosses no USD (the base currency in the cross pair is quoted against USD indirectly):

• Contact size = 100,000 base currency units
• 1 base currency unit = 1 CAD for CAD/CHF, 1 CHF for CHF/GPY etc.
• Commission = 5 base currency units for the volume of 100,000 base currency units
• Traded volume (in BC units) = 100,000 × V (in lots)
• Volume (in USD) = 100,000 × V (in lots) ÷ Price (USD/BC)

The definition implies that commission in USD for the traded volume of 100,000 BC (1 lot) is:

5 BC units = 5 ÷ Price (USD/BC)

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0.005% of the traded volume in USD: where Price = USD/BC ASK Price for SELL positions or USD/BC BID Price for BUY Positions if the base currency in the cross pair is quoted against USD indirectly.

2. #### Let's consider the detailed commission calculation for metals:

• Gold

• Contact size = 100 units of the underlying asset
• 1 unit of the underlying asset = 1 oz (troy ounce) for GOLD/USD
• 1 lot for GOLD/USD = 100 oz.
• Commission = 5 units of the underlying asset for the traded volume of 100,000 oz.
• Traded volume (in oz) = 100 (oz) × V (in lots)
• Traded Volume (in USD) = 100 (oz) × V (in lots) × Price

The definition implies that commission in USD for the traded volume of 100,000 units of the underlying asset (1,000 lots) is:

5 UA units = 5 (oz) × Price

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0.005% of the traded volume in USD: where Price = the BID price for SELL positions, or the ASK price for BUY positions.

• Silver

• Contact size = 5,000 units of the underlying asset
• 1 unit of the underlying asset = 1 oz (troy ounce) for SILVER/USD
• 1 lot for SILEVR/USD = 5,000 oz.
• Commission = 5 units of the underlying asset for the traded volume of 100,000 oz.
• Traded volume (in oz) = 5,000 (oz) × V (in lots)
• Traded Volume (in USD) = 5,000 (oz) × V (in lots) × Price

The definition implies that commission in USD for the traded volume of 100,000 units of the underlying asset (20 lots) is:

5 UA units = 5 (oz) × Price

Let us assume that commission (in USD) for the traded volume V (in lots) is X (USD).

We can find out the value of X by solving the proportion: So,  or 0.005% of the traded volume in USD:   (1 vote(s)) This article was helpful This article was not helpful