I’m new to fx trading. After reading few of the posts on this forum and going through school of pipsology, I found that I can understand entry and exit in longer time frame better than the smaller time frames of 5 and 15 mins. But I’ve a basic question on Spot rate vs Forward outright.
As [I]spot rates[/I] are valid for 2 days how do I keep my position longer than 2 days?
Does it mean, I should look at forward outright (weekly, monthly) rates so that my positions remain open longer and I can keep the profits run little longer?
You don’t have to worry about any of that. Your broker solves the 2 day problem for you behind the scenes, you never have to think about it. If you open a trade it will stay open until you close it, whether that’s in a few seconds or in a few years.
I’ve been trading forex successfully for 2 years and I don’t even know what “forward outright rates” are. You don’t need to worry about them to trade retail spot forex.
It’s not that spot rates are “valid” for 2 days, but that spot trades are done for delivery in 2 days. As phil838 said, though, if you hold a position through end-of-day your broker will roll it forward for you.
