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Pankaj D Costa
2736
Pankaj D Costa 2015.07.05 09:44 

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
1385
Osama Shaban 2015.07.05 11:03  

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
36138
Anton Nel 2015.07.05 11:38  

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
10164
Mirko Cerulli 2015.07.05 13:06  
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.
1579
hongbin fei 2015.07.05 15:50  

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
10164
Mirko Cerulli 2015.07.05 16:49  
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
2736
Pankaj D Costa 2015.07.05 19:17  

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 2015.07.06 09:15  
OrderCommission()/OrderLots()/MarketInfo(Symbol(),MODE_TICKVALUE)*MarketInfo(Symbol(),MODE_TICKSIZE)
Jaume Torne
89
Jaume Torne 2015.07.06 09:24  

MarketInfo about Commission is not supported yet

I think

Pankaj D Costa
2736
Pankaj D Costa 2015.07.06 14:45  

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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