Does FXCM credit or debit roll over fees/charges to LIVE account. I see it being credited and debited in the demo account.
Hi Starlo,
Yes, in the forex market 5 PM New York time is considered the end of one 24-hour trading day, and the start of the next 24-hour trading day. If you keep a trade open past the 5 PM cutoff then your position will be rolled over to the new trading day. As part of that process, your account will be credited or debited for the rollover interest.
Below is a screenshot of the Simple Dealing Rates window on Trading Station. It shows the rollover amount for short positions (Roll S) and long positions (Roll B) that would be applied if a trade is held open past 5 PM today.
Since this is a USD-denominated trading account, the amounts shown are in US dollars and cents and are for a 10k trade size. For example, the “Roll B” for AUD/USD is 0.39, so if I held a 10k long position past 5 PM today, I would earn $0.39 in rollover interest or 39 cents.
There is a actually a long term trading strategy called “carry trading” that is built around the idea of holding a position long term, somtimes for months or even years to collect the rollover interest.
Note that if you close your trade before the 5 PM cutoff, then no rollover interest will be credited or debited for the position. That is why many day traders will make sure they are flat at 5 PM, so they don’t have to factor rollover interest into their trading.
Jason