intra day basis

[Sindy]

I am actively trading the currency markets, but more on an intra day basis. Is it a good idea to stay in over night ?

 

[jade]

There is nothing wrong with staying in over night as your position will merely be rolled-over. You need to however understand that there will be a difference in the price you entered in initially and the new rolled over price due to interest rate differentials.

 

[options]

There is nothing wrong with staying in over night as your position will merely be rolled-over. You need to however understand that there will be a difference in the price you entered in initially and the new rolled over price due to interest rate differentials. Look at www.forextradersa.com for some very useful info to this regard.

Mmmmm! Not entirely true. I haven't looked at that site, but isn't this the type of thing that sb's do?

Can't say for any other companies, But fxcm and I should think quite a few of the others. The entry price will stay exactly the same. You do however pay overnight interest. In fxcm's case this is calculated at 9.30. pm Gmt time.

Holding overnight?

Depends which way you expect the market to move. You could wake up with a nice surprise. Or a known in advance, get out price due to a stop in the market.

It's generally considered that unless you are trading heavy size intraday; holding overnight, week etc, is the only way to make decent money.

 

[Buk]

Options is right, inter-bank foreign exchange trading transactions are settled on pre-arranged settlement dates. (settlement dates in the spot market are valued on a 2 working day basis).

some don't charge or pay interest rate differentials on spot transactions, they merely charge a minimal fixed fee per 100,000 base currency lot overnight regardless of orientation or currency pair, almost like a non-expiring scalable futures contract since open positions are never closed out and re-opened as in a traditional overnight swap.

the one I occasionally use charge on any positions held after 12:00 CET.