Stop/loss restrictions?

Hi everyone,

I am currently trying out a demo account with Oanda and after a few weeks I was curious about the stop/loss feature. I know that you can set it at any point you want. Since I am trading one currency pair (USD/CAD) and receiving $0.032 every hour, thats $0.76 per day, if I let it ride without hitting the stop/loss mark.

I ask Oanda Live Chat support regarding any penalties if I were to leave my stop/loss at a high level or change it anytime and leave it for a week or so and receieved those nice daily interest into my account. They said, sure and there are no restrictions on that and I could leave it as long as I want just as long I dont hit the margin call.

This sounds fairly simple and easy money but I know that the currency pair could just go on to the negative side and I will end up losing all my money or end up getting a margin call.

I want to verified from you guys if this is true that you can set your stop/loss any time and just hog the daily interest?

Thanks in advance.

Money management and making profits is of the highest importance in Forex trading. I would not put myself in danger of a margin call just for daily interest by setting a very deep stop loss. I feel that interest is just the cream on top as long as I am still making profits and all my trades fall within my money management rules.

I agree. The money you earn from rollover will quickly be lost once your blind position goes sub 0.

The way around this is to put on your normal position in the appropriate direction to earn interest. Then you put on another position of equal size in the opposite direction with a second broker, that does not charge interest.

This way you are ‘hedging’ your position against loss, and still earning interest on the account that pays it.

I don’t recommend doing this. Stick with trading!

That is what I was thinking too. Setting my stop/loss at a reasonable range will reduce my risk. I’m not too firmiliar with the hedging strategy but I heard that some broker wont allow you to do so.

I’ll just stick to simple trading of currency.

Thanks for the input.