Is there an account limit on GKM Forex?
There is not a lower limit for opening accounts on GKM Forex. The legislation requires that you have minimum $100 or its equivalent in other currencies in your account.
WHAT ARE THE FOREX MARKET HOURS?
Transactions start at 00:01 on Monday and continue without any interruption until 23:59 on Friday. Transaction times may differ in indices and commodities. You can check transaction times for each parity at the properties section of that parity.
WHAT EXPENSES ARE INCURRED IN FOREX TRANSACTIONS?
You are only charged the spread for your transactions. If a position is carried over to the following day, a carrying cost (swap) is reflected to your account as a plus or minus. HOW TO DEPOSIT AND WITHDRAW MONEY IN A GKM FOREX ACCOUNT?
You can deposit and withdraw money by remittance, EFT, cryptocurrencies or credit card. You can contact your investment expert for further information and find the best method.
HOW CAN I SET AND CHANGE MY LEVERAGE RATIO?
Your account opens automatically with 1:200 leverage. If you request a change, this ratio can be raised up to 1:500. You can contact your investment expert to submit your request.
HOW CAN I CREATE AN ACCOUNT ON GKM FOREX?
You can create an account by applying on our website and entering your identity and address details.
WHAT IS A LOT?
The word "Lot" denotes "dividing, allotting, distributing by ballot".
In the forex market, 1 lot is a magnitude that stands for 100,000 units. Size of a transaction on a forex market is expressed in lots, and your transaction is entered in lots. For instance, 1 lot of a parity represents 100,000 pieces of the unit on the left side of the foreign exchange rate.
Assuming that the average spot price of the EURUSD parity is 1.1200, if a trader who thinks that the EURUSD parity will increase wants to buy 1 lot, they sell 1.1200*100,000 = $112,000 and buy a transaction magnitude of €100,000. This means that the purchased currency is 1 lot, i.e. 100,000 units of EUR.
Please note that the transaction magnitude of €100,000 is not the actual amount but the transaction magnitude bought in for profit or loss with a certain amount of guarantee and the leverage preferred.
WHAT ARE LOT TYPES?
Traders may prefer smaller transactions than 1 lot on the forex market. The most frequently used lot types in forex are mini lot and micro lot.
What is a Mini Lot?
A Mini Lot means 0.1 lot, i.e. 10,000 units. For instance, assuming that the EURUSD parity is 1.1200, a purchase transaction volume of 0.1 lots means a transaction magnitude 10,000*1.1200 = $11,200.
What is a Micro Lot?
A micro lot means 0.01 lot, i.e. 1000 units. For instance, assuming that the EURUSD parity is 1.1200, a purchase transaction volume of 0.01 lots means a transaction magnitude 1000*1.1200 = $1120.
HOW TO CALCULATE GUARANTEE FOR FOREX TRANSACTIONS?
A minimum balance, i.e. a sufficient amount of guarantee should be available in your account to trade on the forex market. The required amount of guarantee is directly affected by your leverage ratio, transaction volume (lot) and the market value of the product you trade in at the time of the transaction.
HOW GUARANTEE IS AFFECTED BY LEVERAGE RATIO?
One of the biggest advantages of trading in the forex market is the leverage system. The leverage ratio you use in your transactions directly affects the amount of guarantee that must be available in your account. Your lot amount and raising the leverage ratio with the parity unchanged allow you to invest in the same transaction volume with a smaller amount of guarantee.
Let's say that you want to buy 1 lot in the EURUSD parity and you set your leverage ratio to 1:100.
The amount of guarantee you are required to deposit is calculated as follows:
Guarantee = (Market Price of the Parity * Transaction Volume * Lot) / Leverage Ratio
Guarantee = (1.1200*100,000*1) / 100 = $1,120
If you set your leverage ratio to 1:10 rather than 1:100, your guarantee would be as follows:
Guarantee = (1.1200*100,000*1) / 10 = $11,200
As the leverage ratio increases, your investments bear more risk, and as long as your lot amount remains the same, the minimum guarantee amount falls.
HOW DOES LOT SIZE AFFECT THE AMOUNT OF GUARANTEE?
Increasing your lot with the leverage ratio and the price of the foreign currency to be invested in remaining the same requires more guarantee. Reducing your lot means that a smaller amount of guarantee is enough to start trading.
Assuming that the leverage ratio is 1:100 and the price is 1.1200, the amount of guarantee required to buy 1 lot in EURUSD is as follows:
Guarantee = (1.1200*100,000*1) / 100 = $1,120, and the amount of guarantee required for a smaller lot of 0.1 is as follows:
Guarantee = (1.1200*100,000*0.1) / 100 = $112
WHAT IS SPREAD?
Spread is the price difference between the buying and selling rates of a foreign currency. A forex trader does not buy or sell a foreign currency at a single rate. There is a buying rate and a selling rate for a given foreign currency. No commission fee is required for forex transactions. Only the transaction cost called spread is paid. Spread is the transaction cost that is the difference between the selling rate and buying rate of a foreign currency at the transaction time.
For example, let's assume that the EUR/USD parity buying rate is 1.0593 and selling rate is 1.0591. The spread ratio of the EUR/USD parity for the specified rate is 2 pips.
In other words, it costs 2 pips on the FX market to perform a transaction for 1 lot on the EUR/USD parity.
Since spread is the difference between the buying and selling rates of the traded parity in the forex market, spread depends on the product traded. When we start a transaction in the forex market, we start with a loss equal to the spread. This resembles the buying-selling rate difference of a currency exchange.
The spread ratio depends on the liquidity of the relevant product and the volatility of the forex market. In case of shortage of liquidity, the gap between the buying and selling rates may widen and the spread ratio may increase.Warning Spread ratios may be highly volatile before, during and after the data, and the market opening hour of the relevant product.
"Dynamic Spread" is used as a standard in the forex market. Spread ratios in the interbank market change dynamically based on the transaction volume in the market. However, some brokers use fixed spread for specific products.
Spread is expressed in "pip".
WHAT IS SWAP?
The word sense of "Swap" is "to exchange". In financial markets, it denotes an exchange contract under which two parties mutually exchange different interest payments or foreign currencies based on an asset or a liability within a certain period of time.
In forex transactions, the money bought is lent, and the money sold is borrowed. Swap fees are calculated by the relationship between low interest and high interest depending on the foreign currency traded.
In the forex market, swap can be defined as "overnight interest cost" or "cost of carry".
If the currency with the higher interest is sold and the one with the lower interest is bought, the overnight cost of carry of the one with the lower interest rate is accepted, and it is reflected to the investor's account as the cost of the swap.
Since a trader with a USDTRY buying (long) position sold TRY and bought USD, a currency with a lower interest rate), the transaction will result in a minus (-) cost of swap for the trader.
WHAT ARE PIP & POINT?
As it is known, forex market is less costly than many financial markets. It is very easy and fast to trade in the forex market without incurring account such costs as maintenance fees, brokerage fees, commission fees, etc.
While trading in the forex market, the only cost element to consider is the "spread ratio". Spread denotes the difference between the buying and selling rates of a foreign currency, commodity or index. Spread is expressed in "Pip". In short, the fourth decimal place of the magnitude showing momentary changes in foreign exchange rates is called "Pip", and the fifth decimal place of the same value is called "Point".
Abbreviation of the "Price Interest Point", pip is often defined as the smallest change in foreign exchange rates, and spread ratios representing the transaction cost in forex markets is expressed in pip. 1 pip of change stands for the change in the fourth decimal place of a currency.
Rise of the EURUSD parity from 1.3450 to 1.3453 is a 3-pip increase.
1.3453 - 1.3450 = 0.0003. As can be seen here, the fourth decimal place of a rise or fall in a foreign exchange rate gives the pip value. Based on the amount of lot and the leverage ratio, this value may change in monetary terms.
To calculate the monetary value of 1 pip:
Let's assume that the EURUSD parity is 1.3453 and we trade 1 lot using a 1:100 leverage.
100,000*0.0001 = $10 is the monetary value of the EURUSD parity in an upward or downward change of the pip value.
WHAT IS A POINT?
As a unit that indicates the change in the forex market, point resembles pip. However, the fifth decimal place of a foreign exchange rate is used to calculate the point. The point value is usually 0.1 times the pip value.
For example, an increase from 1.34528 to 1.34572 is a 44-point or 4.4-pip increase.
HOW TO DEPOSIT MONEY?
• You can deposit, transfer or EFT money to the account numbers specified through online banking, ATM or a bank branch 24 hours a day without any expense deduction.
• You can deposit TRY, USD or EUR. (Guarantees in TRY and EUR are converted into USD at the current exchange rate of the bank and deposited in your account)
• The description line of the transfer should include full name
• Cryptocurrencies can be deposited via electronic wallets without using a bank
HOW TO WITHDRAW MONEY?
The withdrawal cost is met by our Organization, and you are not charged any expense.
• You can log in our Customer Panel with your MetaTrader credentials and request to withdraw money.
• If you requested to withdraw money from your accounts, your requests are fulfilled the same day from 09:00 to 16:00, or until 12:00 on Fridays.