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A box spread is a combination of a bull spread using calls and a bear spread using puts, with one call and put at an exercise price of X1 and another call and put at an exercise price of X2. Unlike poker, we do not have to make extreme bets to be successful.
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You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite.
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Risk is determined by the difference between your entry price and the price of your stop-loss ordermultiplied by the position size and the pip value discussed in the scenarios below.
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The study allowed noting tiny changes in the concept definition over the years and publications of theory. Therefore, the derivation, analysis and synthesis of the concept refers to the rigorous process of clarifying the definition of the concepts used in the science.
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Most brokers offer a standard and a mini contract with the specifications in the table below:
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