Swap question

ele020

Corporal
Messages
75
Swap rates are both positive and negative but it is very hard to earn positive swaps without any risks.
I have never earned swaps in my trading history on any of my trades till date. My trades always dragged me into paying swaps. :confused:
 

bigdolly

2nd Lieutenant
Messages
1,059
I have never earned swaps in my trading history on any of my trades till date. My trades always dragged me into paying swaps. :confused:
It is perfectly ok if you expect that the capital gain will offset the loss in swaps. It's a major discomfort for newbies to see how swaps eat their profit (or increase loss) but this is due to bias for short-term gains.
 

ele020

Corporal
Messages
75
Yes,,,,,,, that is soooo like true... If you start comparing your short term profit/loss picture with swap charges of long term trades, one will definitely face disappointment. If a trader is looking for quick gains they should never go with long terms trades because its a fact that long term trades show their true colours after a good long time..
 

fxoday

Recruit
Messages
367
I think needs to check the pair traded and rollover fee on your broker, too long time hold position will be charged by swap fee, and if the account gets floating more loses it will reduce equity quickly if don't want to charge rollover cost, look for a broker that offers Islamic account, although open position a month or more will never be charged by swap fee.
 

bigdolly

2nd Lieutenant
Messages
1,059
I think needs to check the pair traded and rollover fee on your broker, too long time hold position will be charged by swap fee, and if the account gets floating more loses it will reduce equity quickly if don't want to charge rollover cost, look for a broker that offers Islamic account, although open position a month or more will never be charged by swap fee.
Swap is important type of transaction costs that you have to take into account when placing and holding trades overnight. An example that merits illustration is buying WTI when it was negative in April. We could expect for sure that price will eventually rise (since it's basic commodity), however many how tried to use this idea in trading burned their fingers as they had to pay swaps which ate gains from price appreciation.
 
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