Can we avoid interest?

Global Markets Bonds and Interest Rates
1

Can we avoid to take or give interest while forex trading?
I was reading babypips com/learn/forex/time-to-make-some-dough and noticed that they said we have to pay or gain interests. it also said this line:

If you do not want to earn or pay interest on your positions, simply make sure they are all closed before 5:00 pm EST, the established end of the market day.

Didn’t really understand what this said either.

2 Likes
2

Never thought about it but with what you stated, it looks like the platform charges interest on any
position open “overnight”, meaning not closed by 5:00 PM EST?

3

Yeah convert to Islam and get a swap free account. Tuh

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4

If you are asking from a ‘risk’ POV, you can always limit exposure by hedging it. Only other option is wnat A1 mentioned.

5

When you say hedging do you mean like using futures, options Daisy-chain type hedging ??

6

Pretty much as a way to just reduce exposure. But if OP is more concerned with ‘redtape’ and ‘process’ as opposed to the risk, than my suggestion is pointless

7

huh? Elaborate please?

8

@SamadAlam what do you want elaborating ?

9

Everything u said, I didn’t understand. What is a swap-free account?

10

Here’s a link but I’m not saying you have to use this broker… Many others have this account type.

https://www.icmarkets.com/en/trading-accounts/islamic-account

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11

A proper Forex strategy on major currencies is beyond being heavily influenced by overnight interest rates because the prices fluctuate lucratively enough.

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12

That’s not really possible. Every currency attracts interest - which can be both positive or negative. In fact this is one of the reasons why some people prefer only daytrading.

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