AUDCAD - Definition and Characteristics

Performance

The AUDCAD cross has gone nowhere in the last three decades and tends to fluctuate between 0.80 and 1.05. When writing, the price is on its way to the 2020 lows in the 0.80 region as the global economy faces a recession. Additionally, aspreviously said, the Canadian dollar is tied to oil prices. Since the WTI oil rose to new decade highs above 120 USD in 2022, the CAD received massive support, strengthening against the Australian dollar.Once the sentiment improves, the cross will likelyreturn toward parity. Therefore, this trading instrument is not suitable for long-term investors and holders due to its sideways trend. Instead, swing traders could benefit from its cycles as it often provides good momentum lasting for several weeks or months.
 

_{Source: Purple Trading Metatrader 4}

AUDCAD - quotes and trading

The AUDCAD currency cross is available for trading on our Purple Trading Metatrader 4 platform. First, choose the new order button after finding the ticker AUDCAD on the Metatrader 4 interface. The following window will appear.Source: Purple Trading Metatrader 4.
 

_{Source: Purple Trading Metatrader 4}

Lot value calculation

When you open our Metatrader 4 platform and click on the AUDCAD ticker, you'll see that there is often a 1 pip spread between the Ask and the Bid priceduring periods of high liquidity (usually when London and New York are open for trading).

One micro lot is the minimum volume for trading AUDCAD (0.01). If you trade a mini lot (0.1), you will gain or lose 7 USD for each 10 pips AUDCAD makes. Every 10 pips of AUDCAD movement will yield 35 USD profit/loss when trading half a lot. For example, you buy half a lot at 0.85, and AUDCAD goes to 0.8550. Your total profit will be 175 USD (calculated as 50 pips movement * 35 USD profit per 10 pips of the move). Whenentering a short position, the same principle determines your profit or loss.

The AUDCAD is priced in Canadian dollars, so keep that in mind. Therefore, whether your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate.

You have the option of trading at market price (market execution) or using pending orders (limit and stop orders). In addition, you can start trading without the stop-loss and take-profit orders and add them later.

Frequently asked questions and terms