What does ‘zero FX conversion markup’ mean?
It means that while currency conversion may still occur when currencies differ, no additional FX conversion markup is charged.
How does this affect KO trades?
With zero FX conversion markup:
- KO trades are not subject to additional FX costs
- Opening P&L is affected only by the market spread
- FX conversion does not change how profit and loss is calculated for the trade
Will my trade still start slightly negative?
Yes, but only because of the market spread. This applies to all trading products and cannot be avoided.
Does the knock-out level affect opening drawdown?
No. When no FX conversion markup applies:
- Wider or tighter knock-out levels do not change the initial drawdown
- The knock-out level defines your maximum possible loss, not your opening P&L
Is my maximum loss affected?
No. Zero FX conversion markup does not change:
- Your knock-out level
- Your maximum possible loss
- How the product works