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Why swap is more on short trades?


yogeshwartyagi

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  • 1 month later...

May I know what is your broker? So far I never encounter this. But as far as I know theirs no charge on it as long you don't hit the margin that will force the close of the trade. But I guess its depends on the broker that you have. theirs also brokers that charge if you do scalping. So if I'm you you chance broker.

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  • 4 weeks later...
  • 1 month later...

I noticed that whenever i kept my position open over night, broker adds swap charges to my trade, and for long trades it is lesser, while for those short it is much higher. Do anyone know what may be the reason for different swap on long and short trades?

I have two brokers that has swap right now. Its really weird. In the other one I earn profit if I'm in sell and pay when I'm in buy. But in one of other brokers I have I pay even if I'm in buy or I'm in sell. In my experience. its usually ten to 20 cents per day. that means in a week Its 1 dollar fee. In a month its 4 dollars fee more or less. that's about 40 pips only. So I think its till advisable to hold your trade and pay fees.

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  • 2 weeks later...
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This is totaly depend on your broker,as for me i dont experince such thing on my account am currently using Liteforex,may i know your broker and i will tell you why.

I have marketiva, fxpro, liteforex, uwcfx, instaforex, forex.com and fxcm right now.

Just one question what kind of account you have in liteforex? And how much do you have in here and how many trade you do a week? and you can add more informations if you like. Enlighten me. thanks.

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there are brokers that will require you to pay for swap, maybe it is one way of having an income for them due to that you have traded overnight. and i have noticed that when you register your account to a broker, it will ask you whether to check on swap or not, maybe you could uncheck your settings so that they will not charge you.

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  • 3 weeks later...

Not all brokers offer these swap free account as you put it. It is those brokers that try to attract vlients who have religious iclination against swaps that such accounts were created for. I personally do not like these swap free accounts because a trader will not earn the huge positive swaps on exotics.

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It is not true to say that swaps are more on the short trades. With every currency in a traded pairs,that whose interest rate is higher pays a trader some amount if thet rader were taking that side of the pair. It is an equal opportunity to be on the negative aspect of the swaps if you ask me.

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  • 4 weeks later...

This is the procedure of pass through any border line. As we know that we have to pass from a broker's agency. So they may take some charges as position support. As short term treader should use this slot for trade within a short time. So if you block that position over a night or some long time then they should take that charges. But you need to make sure about your exact operation as charges are depending upon our total operation.

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  • 2 years later...

I feel pity for people who have to pay heavy swap with all their trades, but the same time I feel fortunate to be trading with OctaFX broker, it is a company that allow me to open swap free account without having to prove my religion and thanks to that I can trade with complete freedom as it does not matter if the trade is short or long I don’t have to pay a penny of the fees for it.

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  • 1 month later...
  • 1 year later...
  • 1 year later...

I really don’t waste my time into swap as I operate on swap free account under OctaFX broker. They are awesome with been regulated by FCA plus are a true ECN that too an award winning one, so I feel pretty special with them. I use their swap free account which means there are no concerns about paying overnight charges at all and allow me to perform nicely in all situations and keeps it all going smoothly all the time.

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  • 4 weeks later...

Frankly speaking, I don’t have complete awareness as far swap is concerned, so I don’t know why swap is more on short trades. I don’t prefer paying swap at all, so more or less swap is not the thing I need to know. This is all possible with broker like OctaFX who have Islamic Account through which one can trade quite easily and is ideal way through which we can perform and also able to gain fair amount of rewards.

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  • 10 months later...

Frankly speaking, I don’t have complete awareness as far swap is concerned, so I don’t know why swap is more on short trades. I don’t prefer paying swap at all, so more or less swap is not the thing I need to know.

 

These are the basic things you should know. They may not be of concern but if you are trading for real then at some point you may find the information useful. Because some companies create rules around it.

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I have marketiva, fxpro, liteforex, uwcfx, instaforex, forex.com and fxcm right now.

Just one question what kind of account you have in liteforex? And how much do you have in here and how many trade you do a week? and you can add more informations if you like. Enlighten me. thanks.

I've traded for sometimes and I started with instaforex and have also used FXCM. See, I think the idea of swap is relative, I noticed on my instaforex site,  swap was alot, but the same cannot be said for FXCM

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