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
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?
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)
0.0 + $4*1.1110/$10 = 0.44 (commission matches with pips needed to recover it)
PipValue = 100,000 units / 122.776 (USDJPY) = $8.14491 per Standard Lot
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.
My ECN broker is :
Commission for 1 million USD = 20 usd
is same as:
Round-turn $4 once 1 lot position
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
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)
MarketInfo about Commission is not supported yet
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.