Swaps & I need your help

Beginner Questions Trading Psychology
1

I am really disheartened by the amount that swaps eat up on my funds.

When I was lured into trading I knew nothing about it and a great story was presented and sold to me about the potential of making extra money through a small investment… the agent went so far to also say that they had their app integrated with AI to generate profit for the account even when I didn’t take any actions…

Now I am almost 6 months into trading still new and honestly lost… I literally thought and was silly enough to assume that $250 could fetch me $1000.

I’ve put it more than $6000 with only $1000 returns which is absolutely insane.

I wasn’t even aware that this platform required you to open and close positions daily to avoid swaps,. No one told me until 1 month ago when something crazy happened.

Also; my agent was sweet and honest enough to admit that he took his secretary out for lunch and all my positions closed at stop out… & That was the FIRST time I even knew what stop out means!!!

I am now regretting for not closing my account at that time… I could have cut my losses when I had only invested $1000-$2000 and not $7000.

I am really confused right now whether to close everything down or keep allowing these open positions with negative profit to keep eating up on my funds.

I did not get much help or direction from the platform to be honest.

Also, I may sound silly cos I admit that I’m
Completely new to this trading , do trading platforms benefit from the swaps?

Also, they seem to be happy with me opening more and more positions but the initiative to encourage closing a position is just not there…

I am sincerely keen on knowing how all This works !!

I need some solid advice to find my way out…

I wanted to recover all I’ve lost but at what cost?

How long do I keep these positions open and keep allowing swaps to eat up on my funds?

I’ve exhausted all my savings and I’m kinda stuck now.

2

Sorry to hear that you’re getting milked dry by your broker.

Swaps or Rollover fees can cut both ways in that it may cost you or pay you depending on whether you’re long or short overnight. If your broker has swap fees, they should be plainly stated on their website with the current rates, something like the screenshot below.

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There’s not much that you can do now that the genie is out of the bottle except close positions that will incur a swap charge at the end of the trading day. Hold positions that will pay you a swap fee (if the position is in profit). But it’s not going to be enough to make you whole.

Going forward you can do your due diligence about all the fees, commissions, and spreads that a broker implements before making a deposit. There are brokers that don’t have swaps, usually for Islamic accounts but some are across the board.

3

I am so sorry for what you’re going through. It gets frustrating but don’t just lose your hope.
I’ll help you with the basics—swaps are a fee for keeping your position open overnight, and yes, some make money out of it. If you’re going into a loss, it’s best to just close the position.
Don’t feel pressured to keep adding positions. Take your time and learn the basics, like positing sizing and risk management, so that you don’t get overwhelmed during stop-outs.

4

That is a very tough situation, but do not be offended when I say you are to blame for the most part because you have not looked into your brokers rules and their information and reviews, so in my mind you skipped the research part of starting your trading with them, everything no matter how tough is experience for the future, best of luck to you and you are in the right place here to find help and progress further.

5

I just noticed this part. Did you approve for them to place trades on your account without your involvement?

6

No they didn’t but the tricky part is they would ask me to open a position without any background or context and then if I missed closing the position at the right time, obviously I missed the bus.

I am trying to get as much info as possible on forecasts, resistance and support levels etc from the internet but sometimes it’s hard to get the right info at the right time.

I spoke to the broker and told them that we are going in circles and we had to find a way out.

He suggested to deposit some more money and to open position to counterbalance the ones that are making negative profit - I am always skeptical about opening new positions and then if a wrong choice is made or the market volatility is out of control things can go south.

But then I don’t see how else we can make profit if all my open positions are in minus.

I will look at your photo again to see if this Swap info is there.

I did flag the inconsistency in the swaps being charged and I felt that there were some discrepancies/ they claim that they are looking into it (but I don’t think they are doing anything tbh).

They offered to make my account swap free for 1 week but it’s a very narrow window to see much in terms of outcomes.

I have all forex positions open and 2 commodities & there seems to be very little hope right now.

I calculated the swaps that my account would incur and took a calculated risk to deposit amounts way lesser than the swaps.

This is my last shot and I want to try everything I can/

Do you also think that it’s a bad idea to close positions worth $7250 all in negative and then the platform would also expect me to pay the swaps etc…

I feel I should tarry a bit but then my biggest concern is that I do not want these positions to eat up another $1000-$2000 : I simply can’t afford to.

1 Like
7

Don’t walk, run away from this broker.

Don’t add more money, they’re just milking you at this point. Red flag is the broker asking you to deposit more money to fix the current money problem.

Cut your losses and take it as an expensive lesson.

As far as your use of the internet for trading forecasts or signals, don’t do it, but I think you already see the results of that. It’s better to learn how to analyze and trade for yourself.

8

What are your positions your holding

9

I always recommend pepperstone

1 Like
10

Brent, gold, audusd, usdcad, usdjpy (sell), EURusd, usdchf

1 Like
11

Close Brent
Close
Usd cad
Close usd jpy
Close usd chf

Hold
Aud sell
Hold eur usd sell
Hold gold sell

You’ll be ok then no worries

12

I already put in an additional 750$ as they promised to stop swap charges and I did see that all my swap charges together would be a lot more than that for a week.

I have these positions and a few questions:

Brent, gold, audusd, usdcad, usdjpy (sell), EURusd, usdchf

  • who gains from swaps? The platform said that their firm will pay for the swaps when they stop swaps being added to my positions

  • 2 of my positions are in negative profit of $99 and $167- shall I close these toward the end of 7 days even if they are in negative profit of the same amount? Or more? How does closing positions in negative profit help? It’s a loss I would bear right?

  • if there are stop outs am I the only one going to lose or the platform will lose their credit too?

  • if I close my positions with all negative value I am pretty much going to lose over $7500 which is huge for me and I can’t afford to lose all this but again keeping some of these positions may get me to deplete more funds

  • shall I consider closing all the positions before the end of 1 week swap waiver?
    Obviously the ideal case scenario is that some or all of the positions would make profit by the end of the week which is Friday.

  • if all these positions close in negative balance / only swaps would be deducted ? Then how much of the credit amount from the broker would be deducted ?

What are my rights? I need to go through their policy page or is there any standard rule that’s followed by all platforms?

I am trying to understand what would I get toward the end of my account closure ?

I have attached screenshots of where I currently stand!

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I really appreciate everyone’s inputs, comments and remarks…

13

Oh dear that’s nasty

New plan close em all and unload on nzd usd Monday when Tokyo opens

14

Everything is in the wrong direction gold is a sell .

You might get away with usd cad buy and Brent buy but that’s it

15

Unload on nzd usd sell on Monday to get some money back here

16

Hello there, my only sell position is usdjpy and it’s in minus $362.43 profit and the swaps are $144.67

This has been open since September and was advised by the previous agent / this pair only sore ever since

All the remaining positions are in buy position.

I was thinking of monitoring the performance of these positions and close when the position is at its lowest negative profit. So for example if usdjpy’s negative profit comes down to $200 for example may be better to close it then.

And similar strategy for the rest.

Usdcad was performing well and it went down to $67 negative profit but I was thinking that this position will get better next week and I can close it in positive profit.

Just as a reminder the swaps were eating up on my funds and they have agreed to keep it swap free for a week.

So the only losses I would incur f in the market.

I also noticed that their price for a position is lower than some of the other websites so i understand that that’s how they are making their money?

For example USDcad went up to 1.4161 but on their platform it never reached that price…

I have attached a screenshot of my current negative profit against all positions.

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17

That’s what I am seeing too

18

What do you mean unload? Did you mean unhold/ close when Tokyo opens?

What time would that be ? 36 hours from now?

19

What if I open gold in sell position for the same value? Wouldn’t it make me some profit to close gold that’s in buy position? What do you think of that?

20

When you consume leverage you have to pay for it if you hold overnight it is well know fact actually. You can open islamic account though but still will pay some fees instead of swaps