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FP Markets - A Trader's Secret Weapon?
mariaxty replied to NitsuaShow's topic in Fundamental AnalysisHave you -or anyone reading this thread- had any issues with withdrawing your funds from FP Markets? Weird tech issues...spreads, slippage....unexplained spikes? Thanks!
On Wednesday, why do they charge a triple swap rate?
mariaxty replied to amazingjuly's topic in Fundamental AnalysisBear in mind that it works in both directions. If you are long the currency in the higher interest rate pair (for example, long TRY/JPY or short USD/ZAR), you earn the swap rather than paying it. Carry trading is the strategy of keeping a trade open in order to earn the swap, and we recently discussed it. The swap rate (AKA rollover interest) is applied to all open trades at 5 p.m. New York Time, regardless of the duration of the trades. That means that if you buy TRY/JPY at 4:59 PM on Wednesday and close your trade at 5:01 PM, you can earn the full three days' rollover interest, despite the fact that your trade was only open for two minutes. On the other hand, if you are a day trader who is not concerned with swaps, you can buy USD/ZAR at 5:01 PM Tuesday and close your trade at 4:59 PM Wednesday without incurring any rollover interest, despite the fact that your trade was open for 23 hours and 58 minutes. Another consideration is the effect of holidays on the normal swap schedule. If a three-day weekend is approaching, you may earn or pay four days' interest or more on trades opened at 5 p.m. on Wednesday.