Forex trading with City Index enables you to take advantage of some of the tightest variable spreads available to retail forex traders, so you have an edge over other forex traders in the market.
What are Capped Variable Spreads?
At City Index, we place a ‘cap’ or ‘ceiling’ on the maximum amount our forex spreads can go to, so you have a distinct advantage.
For example, our spread on GBP/USD is capped at 5 pips. This means that even if the underlying GBP/USD market spread is 8 pips, our spreads will remain fixed at 5 pips until the underlying market spread retraces back below our capped 5-pip limit. At this point, our spreads will then begin to track the underlying market spread once again unless the capped upper limit is breached once more.
Example of Capped Spreads:
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Why we offer Capped Variable Spreads
We believe that Capped Variable spreads gives City Index forex traders a distinct advantage over other retail traders by allowing you to trade the tightest forex spreads during periods of high market liquidity, and also trade tighter spreads during periods of low liquidity.
1) Competitive Spread Advantage
Capped Variable Spreads is a brand new concept to retail forex trading and gives you a competitive spread advantage over retail traders elsewhere. This means that whilst some forex traders may have to trade at spreads of 8 points or higher during periods of low liquidity, as a City Index retail forex client, you have the distinct advantage of trading at cheaper forex spreads.
2) Cheaper to Trade Around Key Economic Events
Trading in and around events such as the Non-Farm Payrolls or GDP figures can trigger sharp swings in forex prices and cause wider spreads. Using our Capped Variable Spreads, you can trade these events much more efficiently and with cheaper spreads than the underlying market may otherwise dictate.
3) Ease of Mind
Our clients can trade with peace of mind, knowing that even in the most volatile market conditions, where spreads can widen excessively, our forex spreads will remain between fixed capped levels.
4) Price Improvement Technology
Slippage is common in the forex markets, particularly when prices are moving quickly. One of the downsides of slippage is that if a price moves by the time your trade is placed into the market, your execution price could be slightly worse.
What is Slippage? The difference between the expected opening price of a trade and the price at which the trade actually executes is called slippage. Slippage, also known as market gapping, often occurs during periods of higher volatility, when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.
Making the Most of Slippage: At City Index, our Price Improvement Technology makes it possible for us to give you a better price, where possible, so you can use slippage to your advantage whenever it occurs. Price Improvement Technology enables us to execute trades at better levels if prices move in your favour by the time your trade is placed.
For example, if the EUR/USD bid price is 1.4035 when the trade is executed and the price improves to 1.4036 (one pip improvement), the trade will be executed at the improved price of 1.4036 to give you another distinct advantage over other retail forex traders.
The City Index Advantage Web online forex trading platform, Advantage Trader downloadable platform and trading Apps for Android Mobiles and Tablets have been designed to give you the fighting edge over other forex traders. Find out more about our forex trading platforms.
