I am totally new to FXCM MICRO
How many days I can keep a position( buy or sell ) open
Hi jesurajan,
You can keep a position open as long as you want. There’s no time limit for how long you can keep it open.
Keep in mind that you will either earn or pay rollover for each day you hold the trade open at 5pm EDT.
[B]What is Rollover?[/B]
Rollover is the interest paid or earned for holding a position overnight. Each currency has an interest rate associated with it, and because forex is traded in pairs, every trade involves not only 2 different currencies, but their two different interest rates. If the interest rate on the currency you bought is higher than the interest rate of the currency you sold, then you will earn rollover (positive roll). If the interest rate on the currency you bought is lower than the interest rate on the currency you sold, then you will pay rollover (negative roll). Rollover can add a significant extra cost or profit to your trade.
The FXCM Trading Station automatically calculates and reports all rollover for you. You can find the rollover amounts for each currency pair listed in the Simple Dealing Rates view. There are two columns titled RollS and RollB. This indicates the amount of rollover you will earn or pay when buying or selling that pair. A positive amount indicates you earn the amount, and a negative amount indicates you will pay the amount.
[B]When is rollover booked?[/B]
5 pm in New York is considered the beginning and end of the forex trading day. Any positions that are open at 5 pm sharp are considered to be held overnight, and are subject to rollover. A position opened at 5:01 pm is not subject to rollover until the next day, while a position opened at 4:59 pm is subject to rollover at 5 pm.
A credit or debit for each position open at 5 pm appears on your account within an hour, and is applied directly to your accounts balance.
[B]Rollover and the Carry Trader[/B]
The carry trade is a very popular strategy which involves holding positions open for long periods of time to earn the rollover each day. The BabyPips school has a great tutorial on how it works: How the Carry Trade System Works in Forex Currency Trading