Question about Change in purchase price

Currently, I am trading a mini live account with forex.com. and have a question about price modifications.

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

I can understand that when I first purchase their may be varying price changes which I am unaware of and yet still bound to, but nevertheless I don't like it when it changes after a period of time without notification or explanation.

So is this normal in FOREX trading, or something I should be concerned about?

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

Thanks and Regards...

Rosco, if you held the trade around 1700 ET then the difference in price most likely reflects the interest you paid to put on the trade. Remember, you borrowed USD at 5.25% to purchase Euros at 3.50%. You are responsible for paying that differential to your broker.

By the way, welcome to Forex Factory.

Phil,

Thank you for the response.

No, I was not aware that I had to pay interest on the money I was trading with.

Could you please explain how that works? Also, I noticed you said 1700GMT which is about the time I placed the trade, is that significant?

Hi Rosco,

I actually said 1700 ET which is the NY time zone. Genrerally, rollover occurs around this time although, each broker may vary slightly.

In forex you are borrowing real money and purchasing other currencies. You have to pay the interest on that money the same as you would at any other lending institution.

If you are long 1 contract EURUSD you borrowed enough USD to buy 100,000 Euros. You must pay the prevailing US interest rate and you will recieve the prevailing Euro rate. Since the US has a higher rate you will realize a net debit every day. On wednesays, you are credited/debited triple interest to cover the weekend. You should definitely read up on this and talk to your broker if you have questions. Be aware that when you are due interest some brokers keep a little for themselves so you should check with yours.

If you are looking for a good primer of forex I would suggest this book:

The Forex Revolution by Peter Rosenstreich

Phil,

Thank you for your input and I will have a look.

Regards,
Harris Coltrain

For some reason I knew your last name might be Coltrain. If only you had a dog named Flash.

I loved that show when I was a kid.