Hi guy’s as you can probably tell by the post count and the question I am pretty much a complete newbie to forex and trading.
I have a broker question that hopefully someone here can answer for me.
Does anyones broker use a trade rollover ??
I am currently using IG Index, (tradesense programme) on the whole relatively happy with the platform but do find getting deal tickets and activity windows open a bit slow. Which can cost you points.
They run a trade rollover system at the end of the trading day as such, 8pm GMT. Although trades are available 24 hours.
They close your position and simultaneously open another exactly the same as the original trade.
It happened to me a couple of nights ago.
I was down a fair bit and they closed the position debitting my account for the outstanding balance and re-opened the trade. Shortly after the re-opening of the trade, the trade started moving in the direction I had initially anticipated but I was still down from the original closed trade…:mad:
Well guess what, me being the idiot that I am…it dam well happened to me again tonight…:mad:. I completely forgot what had happened to me only a couple of days ago…:eek::eek:
How can you possibly trade intraday or more long term if your broker is doing things like this…opening and closing trades at 8pm GMT on a daily basis ??
Or is this broker only good for very short term trading, day trading, scalping etc.
If they close your trade at 8PM and you’re down 30 pips (For example), then your profit that you take the next day will be 30 pips more as when they re-open your trade, it is effectively giving you a better entry
Kind of hard to explain but I don’t think theres anything wrong with your broker at all
Just read your post again, do you mean they re-open your trade at the initial price?! Are you 100% sure they do this as I really wouldn’t have thought that they would?
Once every 24 hours, [B]every broker[/B] rolls open positions into the next trading day. This has no effect on your position in the market, except that interest credits and debits booked at that time may add or deduct a small amount from the equity in your account. (More on interest in a moment.)
When you buy or sell in the spot forex market, you are actually entering into a very [B]short-term (2 day) futures contract[/B].
That is, your “purchase” of the GBP/JPY, for example, is actually an agreement to buy sterling and sell yen [B]two days from now[/B]. Every day, your broker will roll that contract forward by one day, so the “settlement date” for that “futures contract” never arrives. You can keep a position open for years, and never have to pony up the Japanese yen, or take delivery of the pounds sterling.
[B]The roll-over you are so upset about is a perfectly normal part of this market.[/B]
Regarding interest calculations, here’s a previous post which describes the process: 301 Moved Permanently
What upsets me is the debitting of my account if my trade is going in the wrong direction at 8pm GMT.
The trade I had going yesterday has this morning started going in my favour by over 80 points so far, but I am not in the trade as now I have in sufficient funds.
Due to these newbie errors this has more or less wiped my micro acct out.
Is the time for rollover the same all over the world? I do not live in America and my broker is GFT in the country where I am residing. Is the rollover time still 5pm New York?
Check with GFT, in “the country where you reside”.
Positions with U.S. brokers are typically rolled over at 5pm New York time.
And much of the stuff you might read on the internet implies that 5pm New York time is the worldwide universal rollover time.
This is not necessarily true.
For example, dbFX, the retail forex branch of Deutsche Bank, performs rollovers at 4pm London time; but, clients of dbFX can request a different rollover time that suits them better.
Positions held beyond the rollover time on Wednesdays are treated differently from other days. This is explained in the articles cited below.
