No Swap Accounts

Re: No Swap Accounts

11 by Ogee

ionone wrote: Sun Apr 14, 2024 6:44 pm but you got swaps every day, no ? are swaps bigger during week-ends ?

but it will be reopened at current price right ? if you had a trade opened at 1000 ticks from the current price it will not reopen at that price ?

Yes, swaps is an overnight charge for the interest on what you have borrowed to open the leveraged position. For the weekend swaps amount the broker admin charge and the interest rate parts of the calculation remain the same and the asset price for Saturday and Sunday is derived from the Futures market but generally won't change much from the Friday amount.

Yes, if you haven't already closed out your position it will be closed at the end of the contract (1 month or 3) and be closed at the current price.

chris006

Re: No Swap Accounts

12 by chris006

FXPro does not charge swap fee on CFDs on future contracts. In relation to CFDs of spot market, the spread is slightly higher (example, WTI spread 0.03 vs 0.04 on Oil Future / US$ index future spread is 0.01). On the plus, microlots (0.01) is the minimum size. Of course you do have to handle expiry dates of future contracts.

Does anybody know of another broker that offers similar arrangements?

ionone wrote: Sat Apr 13, 2024 3:22 am I don't like swaps

If you keep an order opened severals days, the swaps can easily eat all the profits

I know about islamic accounts but how does it work ? I think brokers will get their money another way

is Swap only in CFDs accounts ? is there some forex brokers without swaps ?

thanks

Jeff

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boytoy

Re: No Swap Accounts

13 by boytoy

chris006 wrote: Thu Jun 20, 2024 4:34 am FXPro does not charge swap fee on CFDs on future contracts. In relation to CFDs of spot market, the spread is slightly higher (example, WTI spread 0.03 vs 0.04 on Oil Future / US$ index future spread is 0.01). On the plus, microlots (0.01) is the minimum size. Of course you do have to handle expiry dates of future contracts.

Does anybody know of another broker that offers similar arrangements?

Yeah you can use an Islamic/Swap free account if that's your preference and many brokers offer this option just chat to them... Islamic accounts usually have higher spreads and limited pairs to trade like you noted. That's the only catch and makes scalping harder with the bigger spreads..

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Re: No Swap Accounts

14 by Ogee

chris006 wrote: Thu Jun 20, 2024 4:34 am FXPro does not charge swap fee on CFDs on future contracts. In relation to CFDs of spot market, the spread is slightly higher (example, WTI spread 0.03 vs 0.04 on Oil Future / US$ index future spread is 0.01). On the plus, microlots (0.01) is the minimum size. Of course you do have to handle expiry dates of future contracts.

Does anybody know of another broker that offers similar arrangements?

Spot, cash and daily funded bet (DFB) markets are all the same thing, just some brokers use different names. In these markets you are debited a daily interest rate and broker admin fee for your longs, or credited a daily interest rate (minus broker admin fees) for your shorts.

The Futures market was specifically designed for the long term holder where you don't pay or receive swaps (interest debits/credits) but pay a higher spread instead.

The general rule of thumb is that if you intend to hold a trade open longer than 1 week then it's more cost effective to use the Futures market rather than the spot, cash, DFB market.

These users thanked the author Ogee for the post (total 3):: ionone, chris006, boytoy

ionone

Re: No Swap Accounts

15 by ionone

Ogee wrote: Thu Jun 20, 2024 3:59 pm Spot, cash and daily funded bet (DFB) markets are all the same thing, just some brokers use different names. In these markets you are debited a daily interest rate and broker admin fee for your longs, or credited a daily interest rate (minus broker admin fees) for your shorts.

The Futures market was specifically designed for the long term holder where you don't pay or receive swaps (interest debits/credits) but pay a higher spread instead.

The general rule of thumb is that if you intend to hold a trade open longer than 1 week then it's more cost effective to use the Futures market rather than the spot, cash, DFB market.

but sometimes both swaps are negative, no ? I've seen that before

ChuChu Rocket

Re: No Swap Accounts

16 by ChuChu Rocket

ionone wrote: Thu Jun 20, 2024 5:10 pm but sometimes both swaps are negative, no ? I've seen that before

Same here lots of pairs on Oanda and FBS have negative swaps both ways which is shit and is set by those brokers

Always check the swaps before doing carry trades.

These users thanked the author ChuChu Rocket for the post (total 2):: ionone, boytoy

Re: No Swap Accounts

17 by Ogee

ionone wrote: Thu Jun 20, 2024 5:10 pm but sometimes both swaps are negative, no ? I've seen that before

correct, typically this happens when the daily interest rate is so low that any credit on your short is wiped out by the broker's admin fees.

The broker charges admin for calculating the swap each night and also arranging for you to 'borrow' the asset in order for you to short it. Then the trader who took the other side of your short (bought long) pays you the overnight interest rate.

The specific calculation for the swap is slightly different for each different asset class but the basic principle remains the same for all.

These users thanked the author Ogee for the post:: ionone

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