Avoiding triple swap: how do you plan your holds around it?
Holding through the triple-swap day costs three nights of interest, which matters for carry positions and slow swings. The planning question: is the trade's expected move worth the extra financing?
How do you handle it?
- whether you time entries and exits around triple swap
- how the extra swap changes your holding decisions
- the pair where triple swap hurts most for you
The carry trade guide and trading costs guide cover the mechanics.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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