My situation is that I want to gradually increase exposure to a currency I believe in long term (horizon: 2-5 years), gradually because of the CDA principle (cost averaging has been good to me in the stock markets) and also because I will use the position as saving a portion of my income which presents itself to me in monthly installments.
My concern is daily rollovers and how to take out the effects of my depositing dollars from an account which is denominated in a different currency (essentially, I guess, buyng one currency first in order to be able to establish a position in the currency I want). Can I buy against a "basket" or are only pairs traded? Does the rollover affect the rest balance of my account or is it deducted when the trade is realized/settled? How do I calculate breakeven points for how much the currency would have to appreciate vs. the daily rollover for a given period of time?
I have no interest in leveraging, I don't know if "buy and hold" is an expression in forex, but that is what I have in mind.
Please inform me if any of these concerns are moot and based on your understanding of what I'm trying to do here, what would the appropriate measures be? If additional information is required to give an answer, please pose questions and I will try to explain better.
Also, given that this is my outlook, are there particular types of brokers that would make more sense than others for executing this particular strategy. I would not be able to open a 50k account or anything like that, I want to buy an initial position of 5k, and then 1k a month into the position thereafter.
My concern is daily rollovers and how to take out the effects of my depositing dollars from an account which is denominated in a different currency (essentially, I guess, buyng one currency first in order to be able to establish a position in the currency I want). Can I buy against a "basket" or are only pairs traded? Does the rollover affect the rest balance of my account or is it deducted when the trade is realized/settled? How do I calculate breakeven points for how much the currency would have to appreciate vs. the daily rollover for a given period of time?
I have no interest in leveraging, I don't know if "buy and hold" is an expression in forex, but that is what I have in mind.
Please inform me if any of these concerns are moot and based on your understanding of what I'm trying to do here, what would the appropriate measures be? If additional information is required to give an answer, please pose questions and I will try to explain better.
Also, given that this is my outlook, are there particular types of brokers that would make more sense than others for executing this particular strategy. I would not be able to open a 50k account or anything like that, I want to buy an initial position of 5k, and then 1k a month into the position thereafter.