Interest charges are the difference in interest rates in the short term that the broker provides to the customer. On short time, one can believe that these costs are negligible, but this is not the case.
Table of short-term rates
Some brokers are capitalized every day or every second interest. The instruction of interest does not change the value of the position but can taint the profit made for sale. In addition, you should know that professionals hold their positions for a few minutes, a few hours to see a few days at most.
Formula
Interest expense (%) = r_int = Bid_Rate - Ask_Rate
Costs ($) = r_int * Lever * Amount * (Heures_tenus / (24 * 365.25))
Example: For our example, we must deal EUR / USD from 10 am to 10:57 approximately one hour.
Interest expense = 1.9 - 4.3 = - 2.4
Costs ($) = -0,024 * 100 * $ 1000 * (1 / (24 * 365.25)) = (0.27 USD)
In conclusion, FOREX is a very important market, the result of supply and demand of currencies and many players participate for various reasons. By cons, we must remember that speculation is interesting, either, with opportunities for quick profits, but also with the risk of substantial losses in a short time, mainly related to the leverage that is used for transactions will be profitable.
التسميات
forex