Rollover and commissions

Hi everyone!

At frist I want to apologice for my english, is really bad. Yesterday a friend recommend me: dukascopy. This morning I created a new demo account and started. I reed all the conditions, comisions, etc.

I made a couple operations and they took the interest. The problem is that the interest are bigger than I thought. And I don't undestand why?. They say that the interest are 35 dolars for every million dolars and the interest of gold is 55 dolars for every million dolars . I don't know how I trade a volumen of 0.08 millions and how the interest of 0.08 millions are 2.86 dolars. Can someone understand it? and explain?

Thanks

You need to sum up the USD value of all your transactions (buy and sell). Then you will arrive at ~USD 80K which is 0.08 million. That is all that is shown in your images. There is no interest being charged/credited.

The commission of ECN brokers is usually expressed for every 1.000.000 US$ traded. In your specific case, a commission of 35$/million USD is charged. The problem is that many of the currency pairs traded have a different base currency than USD (the base currency is the first currency of any cross. Example: EUR/USD; AUD/USD; USD/CHF etc.). So when you buy (or sell) 1 lot (0.1 mio.) of EURUSD you're actually purchasing 0.1 million Euros. You have to convert those Euros to USD using the rate shown at the moment of transaction.

1000€ x 1.38591 = 1385.91$=0.001385 mio. $
0.001385 * 35$/million = 0.048 $ commission

0.048$*2 = 0.096$

Note that the commission is charged for every amount transacted. So when you enter a trade you make a transaction (for which is charged a commission) and when you close the trade you're actually making another transaction (to which is applied the same fee).

More concisely, you should read the commission table as 35 base currency fee/ million base currency. So you buy 1.000.000 € you have to pay 35€. You buy 1.000.000 AUD, you have to pay 35 AUD. If you want to know how many $ that is, you just multiply your commission with the rate shown at the moment of transaction. At the time being, the round turn (entering+exiting a trade) fee for 1.000.000 EURUSD is 70€ x 1.387=97$. That means 0.97 points added to your spread. So the market has to move spread+1 pips in your favor to break even.

Thank you very much for help. I understand and relize how much stupid is the question.

Thanks again.

Thank you very much. This is very useful information. New traders will get benefited from your post.