Question about fees on leveraged trades
Aug 05, 2023 at 09:53
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5 Replies
Aug 05, 2023 at 09:53
Hey all,
Just trying to understand what leverage is and how it works. Seen in a few places that there isn't any fees charged on positions that aren't held overnight for forex. Is this true? And by extension, does this also apply to a leveraged trade? Meaning let's say I use 1:50 leverage, but I close all my positions and don't keep them overnight (so say for argument's sake, I'm scalping). Am I charged any fees/interest/commission? And yeah I know this is a forum for forex, but was just wondering, if anyone knows if this differs to stock trading?
Just trying to understand what leverage is and how it works. Seen in a few places that there isn't any fees charged on positions that aren't held overnight for forex. Is this true? And by extension, does this also apply to a leveraged trade? Meaning let's say I use 1:50 leverage, but I close all my positions and don't keep them overnight (so say for argument's sake, I'm scalping). Am I charged any fees/interest/commission? And yeah I know this is a forum for forex, but was just wondering, if anyone knows if this differs to stock trading?
Member Since Jun 27, 2023
7 posts
Aug 09, 2023 at 14:35
Hey!
Leverage in forex allows you to control a larger position with a smaller amount of capital. For instance, with 1:50 leverage, $1 in your account can control $50 in the market.
Leverage in forex allows you to control a larger position with a smaller amount of capital. For instance, with 1:50 leverage, $1 in your account can control $50 in the market.
Member Since Jun 28, 2023
17 posts
Sep 20, 2023 at 16:07
You're right, in forex, there typically aren't fees for holding positions intraday, even with leverage. It's different from stock trading, where fees can vary.
Member Since Nov 06, 2023
9 posts
Nov 13, 2023 at 12:39
it will depend on the broker. Ask them directly because fees really be different between brokers
Nov 14, 2023 at 08:55
nier22 posted:There are indeed islamic (or swap free) accounts offered by some brokers like Hotforex, Tickmill etc. You're not charged nor credited swaps if you hold positions overnight in these accounts. Leverage for intraday trades is free means you only pay spreads to enter/exit trade.
Hey all,
Just trying to understand what leverage is and how it works. Seen in a few places that there isn't any fees charged on positions that aren't held overnight for forex. Is this true? And by extension, does this also apply to a leveraged trade? Meaning let's say I use 1:50 leverage, but I close all my positions and don't keep them overnight (so say for argument's sake, I'm scalping). Am I charged any fees/interest/commission? And yeah I know this is a forum for forex, but was just wondering, if anyone knows if this differs to stock trading?
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