Question about Change in purchase price
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Thread: Question about Change in purchase price

  1. #1
    Currently, I am trading a miniature live account with And have a question regarding price modifiions.

    Earlier today, I decided to long on a EUR/USD position and purchased at
    1.293800. This was reflected in their software and the action log.
    Following this for about 15 minutes since the market chugged along I saw to price go down and up a few pips, no problem. Next, I logged out of the program for approximately 20-25 minutes and when I logged back in I noticed that the price now said 1.293870 instead of the first .00.

    I will understand that if I purchase their may be varying price changes that I am unaware of and yet still bound to, but I do not enjoy it if it changes after a time period without notifiion or excuse.

    What's this normal in FOREX trading, or something that I should be concerned about?

    Note: I have just been trading 3 weeks, so please forgive my ignorance.

    Thanks and Regards...

  2. #2

    Thanks for the response.

    No, I wasn't aware I needed to pay interest on the money I was trading with.

    Can you please describe how that works? I also noticed you mentioned 1700GMT that is all about the time that I placed the transaction, is that important?

  3. #3
    Hi Rosco,

    I actually said 1700 ET that will be the NY time zone. Genrerally, rollover happens around this time though, each broker might vary.

    In forex you are borrowing actual cash and buying different currencies. You've got to pay the interest on such money the very same as you would in any other financing institution.

    If you are long 1 contract EURUSD you borrowed enough USD to buy 100,000 Euros. You have to pay the prevailing US interest rate and you will recieve the prevailing Euro rate. Since the US has a greater rate you may realize a net debit daily. You are credited/debited triple interest to pay the weekend. You should definitely research on this and talk to your broker if you have questions. Take note that when you are because curiosity some brokers keep a bit for themselves so that you should consult yours.

    If you are looking for a good primer of forex I'd suggest this publiion:

    The Forex Revolution by Peter Rosenstreich

  4. #4

    Thanks for your input and that I will have a look.

    Harris Coltrain

  5. #5
    For some reason I knew your last name could be Coltrain. If you had a dog named Flash.

    I loved that series when I was a child.

  6. #6
    Rosco, if you held the trade around 1700 ET then the gap in price most likely reflects the interest you've paid to put on the trade. Bear in mind, you borrowed USD in 5.25percent to purchase Euros at 3.50%. You're responsible for paying that differential for a broker.

    By the way, welcome to forexintuitive.

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