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In Forex-type Margined Currency Trading, Do You Technically Lose Money Before You Close Your Position?

If your currency pair goes down considerably, could you just wait for the trend to reverse (assuming it does)?

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This entry was posted on Friday, January 29th, 2010 at 1:05 am and is filed under forex made easy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “In Forex-type Margined Currency Trading, Do You Technically Lose Money Before You Close Your Position?”

  1. gib_ethe Says:
    January 29th, 2010 at 5:09 am

    Here’s how it works with my broker (CMS Forex) and I believe with the majority of others. You lose the trade fees, which are based on the spread between the bid and the ask, the instant you open your position. The fees are deducted from your account balance.
    You can maintain your open position for as long as you wish providing you do not exceed your margin requirement, in which case your broker will immediately liquidate some or all of your position in order to protect their share of the position.
    By only using a portion of your margin the trade can go further into the red before triggering the liquidation, but it may do just that, you may lose a bundle.

  2. pieter Says:
    January 29th, 2010 at 11:07 am

    use a forex program to help you

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