Daily Rollover Question?

[dargane]

I am currently testing a version of the +27/-23 system in a demo account. I had a great day Friday with the GBP/USD, AUD/USD, and EUR/USD, however when I looked at my Account History I noticed something puzzline.

I am using a demo account from Integral Bank, and use 9am New York time as my starting point (1500 Integral Bank Time). On two of my trades, for some reason at 2359 Integral Bank Time my position was closed and another in the same direction opened at midnight.

The only thing I can think of is that this has something to do with a daily rollover cost. Essentially, I am paying another commission or spread on my trades that I keep for more than a day. Is this the same for any Forex broker, or just limited to Integral Bank?

On another note, has anyone used Integral Bank, or Interbank FX for real accounts? These are the two I have demoed with, and I'm curious what other's experiences are.

[taboni]

I have never used either of these platforms, but what you are describing sounds like your positions were rolled, although it usually occurs at the close of the NY business day at 5pm EST.
You are not paying anything extra. This is such a big misconception among new traders in the market who think the roll is just another way to get ripped off by the big bad brokers.
Rollover is a fact of the market. When you place a trade to buy EUR/USD, you are buying one currency (EUR) and selling the other (USD) for spot (2 days settlement) If you want to carry this position overnight, you have to roll it, in effect lending the EUR and borrowing the USD overnight. The difference in the interest that you pay against the interest that you earn is your profit or loss on the roll. Yes you can actually make money on the roll, but beware that there are some brokers who will not pay you what you should be earning on this, so it pays to ask questions on individual brokers rollover policies before opening an account.
Good luck.

[jasperforex]

I second that, some brokers can take 4 pips off you if you short the high yielding currencies overnight

[dargane]

I wasn't aware that the differences in interest rates effect my trades. But now that you explain it, it makes perfect sense. This kind of adds a whole new demension to Forex trading for me.

Thanks again.

[APITrader]

It pays to do business with real banks and reputable market makers. Otherwise you will be killed by extra rollover fees, and other tricks people play in this business.

[dargane]

Have you ever used InterbankFx or Integral Bank? Do you have any recommendations on which institution is best?

[APITrader]

I don't know anything about Integral Bank but its a Ukrainian bank located in Kive and I can't imagine why anybody would deal with a Ukrainian bank unless you absolutely have to. As for InterbankFX, in general I don’t see a point dealing with the IB if you can bedealing directly with the FCM. Also what are the spreads that they are giving you and what are the commissions if any they are asking you to pay?

[dargane]

I'm just using them since my Metatrader demo at InterbankFx ran out. I did not know they were in the Ukraine. Now I know to stay away.

InterbankFx offers a 3 pip spread with a 1 pip commission per round trip trade. It looked pretty good to me. Plus, I like the Metatrader platform. Is there an FCM that offers Metatrader as a trading platform?