Hello all,
New to these wonderful forums and also new to forex, and trading in general. Would like to start a live account in a few months but plan to read through this school and a few other books, and also spend some time on a demo account. Anywho, I wanted to ask a question about transaction fees. I understand your transaction fee is going to be the bid/ask spread multiplied by your lot size, but do you pay this fee once when you open the trade, and then again when you close the trade, OR is it just a one time fee for opening the trade?
Hi,
You only pay the spread the once. Easiest way to think about it is if the spread is 2 pips, think about starting at -2 pips profit and you having to make up 2 pips to break even, thats the commision the broker takes for trading with them.
Since your asking about fees there some others you may want to know about
Rollover - if you do hold a position over night, you will either have to pay this or earn it, depending on which pair you bought / sold.
I think this is covered in the school, if not look up the carry trade it will explain it there.
N