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.
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?
Yeah convert to Islam and get a swap free account. Tuh
If you are asking from a ‘risk’ POV, you can always limit exposure by hedging it. Only other option is wnat A1 mentioned.
When you say hedging do you mean like using futures, options Daisy-chain type hedging ??
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
huh? Elaborate please?
Everything u said, I didn’t understand. What is a swap-free account?
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
A proper Forex strategy on major currencies is beyond being heavily influenced by overnight interest rates because the prices fluctuate lucratively enough.
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.