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How to calculate commission as spread?

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Pankaj D Costa
2746
Pankaj D Costa  

Dear All,

I am confused with a calculation and need suggestion about spread + commission.

Example: I had open a buy position with lot 0.01, here spread is 0.5 points, same time broker charged Commission as per "Round-turn $4 once 1 lot position is opened."

Here how to calculate total spread (Spread 0.5 + Commission) = Total Spread ? 

Thanks & Regards,

Pankaj D Costa 

Osama Shaban
1687
Osama Shaban  

Can I guess your question in an other way to be sure what exactly you mean? if yes, the new question is ...

I got fixed spread broker who charges $4/Lot for round turn ... How can I estimate the equivalent spread if I want to consider the broker is not charging commission?

Anton Nel
41972
Anton Nel  

I know what you mean. I use this way 0.1 lot. So it means 0.40 ...

total spread = 0.5 + 0.4 = 0.9 (incl. commission that based on 0.1 lot)

Mirko Cerulli
10942
Mirko Cerulli  
Assuming that we have an USD base currency account...

We must consider current conversion price to calculate commission and then convert into pips.

Commission*CurrentConversionPrice

Examples:

EURUSD = 1.1110  Current Conversion Price: (EUR/USD) *$4 = $4.44
EURJPY = 1.1110  Current Conversion Price: (EUR/USD) *$4 = $4.44
GBPUSD = 1.5569  Current Conversion Price: (GBP/USD) *$4 = $6,23
USDXXX = 1.0000 (Any pair with USD base value: USDCAD, USDJPY, USDCHF, USDRUB, USDTRY, USDSEK, ...) *$4 = $4.00

Now, we must consider Pip Value in order to calculate how much pips we need to cover commission:
EURUSD, GBPUSD, AUDUSD and NZDUSD have fixed value to $10 per Standard Lot.

It derives that:

Spread + Commission*CurrentConversionPrice/PipValue = Total Spread

(We set zero spread for calculation convenience)

GBPUSD 
0.0 + $4*1.5569/$10 = 0.62 (commission matches with pips needed to recover it)
EURUSD

0.0 + $4*1.1110/$10 = 0.44 (commission matches with pips needed to recover it) 

Different case for GBPJPY (and EURJPY) that is USDJPY Current Conversion Price based
In this case we have: 

PipValue = 100,000 units / 122.776 (USDJPY) = $8.14491 per Standard Lot

GBPJPY

0.0 + $4*1.5569/$8.14 = 0.77 ---> We have 0.62 commission like GBPUSD, but indeed we need 0.77 pips to cover commission. 


HongDi s& t development co.,ltd.
1602
hongbin fei  

My ECN broker is :

Commission for 1 million USD = 20 usd

is same as:

 Round-turn $4 once 1 lot position 

 

is it? 

Mirko Cerulli
10942
Mirko Cerulli  
hongbin fei:

My ECN broker is :

Commission for 1 million USD = 20 usd

is same as:

 Round-turn $4 once 1 lot position 

 

is it? 

Yes.

Round turn is the sum of both transactions (opening and closing).

$20 per $1,000,000 = $2 per $100,000 (Standard Lot)

$2*2 = $4 

Pankaj D Costa
2746
Pankaj D Costa  

Thanks dear all for response and provide solution. 

I am using EA, I have to set total spread cost in my EA.

My question was, suppose, EUR USD spread is 0.5, on the other hand, have to pay $4.00 commission  for 1 standard lot.

Now I have to set total spread in my EA, i.e. spread 0.5 and commission $4.

So, here total spread is how much? ($4 has to convert as spread)

Thanks. 

Jaume Torne
89
Jaume Torne  
OrderCommission()/OrderLots()/MarketInfo(Symbol(),MODE_TICKVALUE)*MarketInfo(Symbol(),MODE_TICKSIZE)
Jaume Torne
89
Jaume Torne  

MarketInfo about Commission is not supported yet

I think

Pankaj D Costa
2746
Pankaj D Costa  

I got a solution, when I opened EUD USD lot 0.01, commission charged 0.06,that means 0.06 cent = .6 spread cost, another hand spread was .6, so, total spread .6 + .6 = 1.2 pips.

Now, I have to put spread in my EA 1.2 pips as to cover spread and commission.

Thanks all for cooperating me.

Best Regards,

Pankaj 

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