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HANDBOOK ON FOREX TRADING transaction date is on a Friday, the settlement date will be on a Tuesday.

Rollover After your transaction, if you do not close or square your position on that same day, but instead choose to close your position one day later, there will be a different settlement date. Your opening position’s settlement date would not be the same as your closing position settlement date. Your broker will roll over your opening position settlement date to the next day so that both your opening and closing position settlement date is the same. You will either have to pay interest or earn interest 16

depending on your position. If you bought a currency that pays a higher interest rate than the currency you sold, you will earn interest. If you are holding a currency that has a lower interest than the one you sold, you will have to pay interest.

Currency Pairs The four majors Currencies always trade in pairs. You buy one currency and sell the other currency in the pair. There are many pairs of currencies, but these pairs are the most highly traded. (See Table 2.1). These four majors alone account for 70% of the USD 1.7 trillion daily volume.

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Handbook On Forex Trading  

Handbook On Forex Trading is the best guide to get you started on trading forex. Forex trading is an alternative to the stock market as the...

Handbook On Forex Trading  

Handbook On Forex Trading is the best guide to get you started on trading forex. Forex trading is an alternative to the stock market as the...

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