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  • #4,701
  • Edited 4:32am Apr 23, 2014 12:40am | Edited 4:32am
Quoting johninthai
sounds great . Got charged -2.07$ on 5 microlots short US30. -0.4130 per 1 microlot, that is a pretty hefty rollover charge !
Actually, when you choose a broker, the first thing that a trader should look is the Rollover rates, the swap.

There are brokers when you can get positive swap for every currency pair, even for gold...

The new way to fool the trader is the swap, in most of the cases, if you keep your trades open for multiple days, your swap costs are going to be much higher that the spread!
Buy at the Low, Sell at the High You make money by waiting not by trading.
  • #4,702
  • Apr 23, 2014 3:49am Apr 23, 2014 3:49am
HI Jason

I have the same question as Vinice about Swaps. Due to Easter holidays (18th & 21st April), I thought I shouldn't have any swaps applied on 18th & 21st April. Whereas FXCM applied no swaps on 17th & 18th April. I'm always very confused when there's a holiday. For the coming ANZAC holiday 25th April, I don't expect any swaps on 25th April and 23rd would have large swaps due to the long weekend. Can you please clarify this?
  • #4,703
  • Apr 23, 2014 4:09am Apr 23, 2014 4:09am
good to see that I'm not the only one surprised by the huge rollover costs. Indeed I'm not a daytrader so most of my trades stay open for weeks which result in heavy swaps
Enter Signature
  • #4,704
  • Apr 23, 2014 4:40am Apr 23, 2014 4:40am
Jason,

Its days two now after the holidays and still all I can see is heavy spreads! Why is this happening?!
  • #4,705
  • Apr 23, 2014 4:58am Apr 23, 2014 4:58am
Hi Jason


In additional to my previous post, I did my research and made below summary to prove what I said about swaps. I’m not very sure below is correct though.
FX pairs value dates are rolled at the end of day by Tom/Next. On public holidays, we shouldn’t have any rollover.


For example

AUDJPY

*AUD had holidays on 18th & 21st April

*JPY - no holidays


17-April Thursday roll - AUDJPY value date 22 April changed

18-April Friday no roll - value date not changed

21-April Monday no roll - value date not changed

22-April Tuesday roll - AUDJPY value date 23April changed


I understand Wednesday normally has triple swaps. However, if there’s a holiday, which day should have twice normal rollover?


If Friday (e.g. ANZAC Day) is a public holiday, does Wednesday still have the most rollover?
I saw an example on DailyFX. It says if there is a US holiday on a Monday, there would likely be no rollover on that Monday and twice normal rollover on Tuesday. However, I believe there should be twice normal rollover on the Thursday before public holiday instead of Tuesday. I’m very confused about this.

If you can shed some light upon this, it would be much appreciated.

Cheers
  • #4,706
  • Apr 23, 2014 10:08pm Apr 23, 2014 10:08pm
yahoo finance Dow Jones daily close = 16501.65 FXCM daily close = 16549 ??
SPX daily close = 1875.39 FXCM daily close = 1883.9 ??

So the daily close from FXCM is not the same as other reputable institutes ? I am well aware that after hours markets went up because of Apple earnings but isn't the daily close meant to be the same ? What's the point of even looking at the FXCM daily closes if they use a different time frame ?
Enter Signature
  • #4,707
  • Apr 24, 2014 1:36pm Apr 24, 2014 1:36pm
Quoting johninthai
sounds great . Got charged -2.07$ on 5 microlots short US30. -0.4130 per 1 microlot, that is a pretty hefty rollover charge !
Quoting Lacunoide
{quote} Yes, Most of the time you pay more in Swap that in spread... Actually very few broker offer good swap.
Hi guys,

While FXCM's swap/rollover rates are competitive, this $2.07 charge was not due to rollover. It's important to note that with CFD trades, you pay financing for long positions and earn financing for short positions. This financing is reflected in the daily rollover that you earn or pay along with any dividends for stocks.

If you find yourself paying rollover for a short position on a stock index CFD like US30, then it can only mean one thing. There were dividends that day for components of the index. Long positions in US30 earn rollover on days when there are dividend payouts, and short positions will pay those dividends. More information about dividends on stock index CFDs can be found on page 6 of our CFD Product Guide.
  • #4,708
  • Edited 5:21pm Apr 24, 2014 2:23pm | Edited 5:21pm
Quoting learner001
HI Jason I have the same question as Vinice about Swaps. Due to Easter holidays (18th & 21st April), I thought I shouldn't have any swaps applied on 18th & 21st April. Whereas FXCM applied no swaps on 17th & 18th April. I'm always very confused when there's a holiday. For the coming ANZAC holiday 25th April, I don't expect any swaps on 25th April and 23rd would have large swaps due to the long weekend. Can you please clarify this?
Hi Learner,

I can appreciate your confusion. First, it's important to note that it's not just FXCM that applies rollover according to the schedule posted on the DailyFX Rollover Calendar. This rollover schedule is used by banks around the world.

To understand exactly why the holiday rollover schedule works the way it does, it's important to know that spot forex trades have a 2-day settlement period (tom/next). In a normal week, every weekday has 1 day's worth of rollover interest applied to open trades at 5pm New York time except Wednesday. On Wednesday at 5pm, there are 3 days' worth of rollover interest applied. That's because at 5pm on Wednesday, the trades are rolled over to Thursday.

Remember that there's a 2-day settlement period in forex. However 2-days after Thursday is Saturday, and banks are closed on Saturday. That means a second day's worth of interest has to be applied to roll settlement over to Sunday, but banks are close on Sunday as well. That means a third day's worth of interest has to be applied to roll settlement over to Monday. That is way there are 3 days' worth of rollover interest on a normal Wednesday at 5pm.

http://i.imgur.com/NxtEVxI.png


During the Easter there is a 4-day weekend, instead of the normal 2 days. That is why if you had a trade open at 5pm on the Wednesday before Easter, you would earn or pay 5 days' worth of rollover interest on most currency pairs to roll settlement over the extended bank holiday weekend. There are still 7 days' worth of interest in the week, but the pattern is 1-1-5-0-0 instead of the usual 1-1-3-1-1 in terms of days' worth of rollover interest applied Monday through Friday.

http://i.imgur.com/Y6rNL4A.png


ANZAC day is a bank holiday in Australia and New Zealand this Friday. As a result, there were 4 days' worth of rollover interest applied to AUD and NZD pairs on Wednesday to roll settlement through the 3-day weekend. I hope I have not confused you more with my explanation! Whenever there's a holiday coming up, it's best to check the rollover calendar the week before, just to see if there are any changes to the normal schedule.

http://i.imgur.com/mONbds3.png

  • #4,709
  • Edited 5:14pm Apr 24, 2014 3:49pm | Edited 5:14pm
Quoting johninthai
yahoo finance Dow Jones daily close = 16501.65 FXCM daily close = 16549 ?? SPX daily close = 1875.39 FXCM daily close = 1883.9 ?? So the daily close from FXCM is not the same as other reputable institutes ? I am well aware that after hours markets went up because of Apple earnings but isn't the daily close meant to be the same ? What's the point of even looking at the FXCM daily closes if they use a different time frame ?
Hi John,

While the New York Stock Exchange is only open from 9:30am to 4pm New York time, stock index CFDs trade 23 to 24 hours per day depending on the exact product. The daily close you see on sites like Yahoo are based on the 4pm close of the exchange. The daily close on Trading Station is based on the 5pm New York time close of the 24-hour trading day.

We use this close time so there are 5-daily candlesallowing you can make an apples to apples comparison. Using a different close time could result in 6 daily candles for the week, with a short Sunday candle only a couple of hours in length. That might negatively impact indicators that are applied to daily charts such as moving averages.
  • #4,710
  • Apr 24, 2014 9:34pm Apr 24, 2014 9:34pm
Thank you so much Jason and I really appreciate you could spend time explaining this to me. It's all clear now and I know what to look for on the Holiday Calendar now
  • #4,711
  • Apr 25, 2014 6:10am Apr 25, 2014 6:10am
Hi Jason,

thanks for the explanation.
Enter Signature
  • #4,712
  • Apr 25, 2014 7:01am Apr 25, 2014 7:01am
HI Jason,

Is there any way to get rollover rates in fxcm's meta trader platform? like, I can get currency swap values in other brokers by writing this

MarketInfo(Symbol(),MODE_SWAPLONG)
MarketInfo(Symbol(),MODE_SWAPSHORT)

Fxcm tells it as rollover rates,

If there is no way to get rollover rates in mql4/mql5 coding, what is the reason/logic behind that?
  • #4,713
  • Apr 25, 2014 1:40pm Apr 25, 2014 1:40pm
Quoting forexhints
HI Jason, Is there any way to get rollover rates in fxcm's meta trader platform? like, I can get currency swap values in other brokers by writing this MarketInfo(Symbol(),MODE_SWAPLONG) MarketInfo(Symbol(),MODE_SWAPSHORT) Fxcm tells it as rollover rates, If there is no way to get rollover rates in mql4/mql5 coding, what is the reason/logic behind that?
Hi Forexhints,

As far as I know, our live rollover information is only available through Trading Station. Your MT4 login details will also work on that platform, however, that would not resolve your issue if your goal is to use this data for coding on MT4. I've asked our Programming Services department to see if they can find a solution for you. I'll let you know when I hear back from them.
  • #4,714
  • Edited 11:14pm Apr 25, 2014 6:15pm | Edited 11:14pm
Quoting Lacunoide
{quote} Actually, when you choose a broker, the first thing that a trader should look is the Rollover rates, the swap. There are brokers when you can get positive swap for every currency pair, even for gold... The new way to fool the trader is the swap, in most of the cases, if you keep your trades open for multiple days, your swap costs are going to be much higher that the spread!

I agree, you need to find the business model of the broker, the one they hide to you.

1) spread
2) commission
3) swap (http://www.investopedia.com/terms/m/markup.asp)
4) withdraw money (http://www.investopedia.com/articles/02/110102.asp)
5) inactif account

Here oanda raise the negative swap by 5 times, for CFD france40.
http://nimga.fr/m/EaGP0.jpg

So, CFD France 40, with:

FXCM = negative swap on LONG, 0 swap on short
OANDA = POSITIV swap on LONG, negative on short (total opposite at FXCM)
JFD = negative swap on long or short

Try to understand something !!!

I will finish by trade only AUD/USD long, and NZD/USD long, and never trade others instruments.
  • #4,715
  • Apr 28, 2014 1:21am Apr 28, 2014 1:21am
Hi Jason

I just want to ask a simple question about value date cut off time, so I dont get charged swaps. Do all currency pairs have the same cut off time at 5pm NY time in MT4? Is there any exception for some ccy?
  • #4,716
  • Apr 28, 2014 7:19am Apr 28, 2014 7:19am
Hi Jason

I noticed that when the market reopen at 00:00 the demo server and live server had slightly different rates for a few seconds (maybe 3 minutes). I didn't book any trades but I was trying to compare charts & symbol rates on demo and live. Does this happen every week?
  • #4,717
  • Apr 28, 2014 3:37pm Apr 28, 2014 3:37pm
Quoting learner001
Hi Jason I just want to ask a simple question about value date cut off time, so I dont get charged swaps. Do all currency pairs have the same cut off time at 5pm NY time in MT4? Is there any exception for some ccy?
Hi Learner,

The daily cutoff for all currency pairs is the same. That means if you have no open trades at 5pm New York Time, then you will neither earn nor pay rollover interest (AKA swap).

Note that some of our MT4 servers are set to GMT+3 while others are set to GMT. If your MT4 server is set to GMT+3, then 5pm New York Time will correspond to midnight 00:00 on your charts. If your MT4 server is set to GMT, then 5pm New York Time will correspond to 21:00 on your charts.
  • #4,718
  • Apr 28, 2014 4:15pm Apr 28, 2014 4:15pm
Quoting learner001
Hi Jason I noticed that when the market reopen at 00:00 the demo server and live server had slightly different rates for a few seconds (maybe 3 minutes). I didn't book any trades but I was trying to compare charts & symbol rates on demo and live. Does this happen every week?
Hi Learner,

The trading desk opens on Sundays between 5 and 5:15pm New York Time. That corresponds to 00:00 and 00:15 on our MT4 servers that are set to the GMT+3 timezone. Before live trading begins for the the new week, any prices you see on either demo or live servers are indicative rates. While indicative rates can be used to place practice trades on your demo account over the weekend, no live trades can be placed until the trading desk opens for the new week. The 3-minute period when you noticed this discrepancy between your demo and live accounts was most likely before live trading had opened for the new week.
  • #4,719
  • Apr 28, 2014 4:45pm Apr 28, 2014 4:45pm
Quoting forexhints
HI Jason, Is there any way to get rollover rates in fxcm's meta trader platform? like, I can get currency swap values in other brokers by writing this MarketInfo(Symbol(),MODE_SWAPLONG) MarketInfo(Symbol(),MODE_SWAPSHORT) Fxcm tells it as rollover rates, If there is no way to get rollover rates in mql4/mql5 coding, what is the reason/logic behind that?
Hi Forexhints,

I was able to get more information on this. Something about the way MT4 links to our back office means that rollover information is not sent to the platform. Instead this information is only visible on Trading Station. While you can use your MT4 login to access Trading Station and see the rollover, there is no way to use the MarketInfo functions on MT4 to retrieve this info. The only way to retrieve this info for coding is to use one of our API's.
  • #4,720
  • Apr 28, 2014 6:06pm Apr 28, 2014 6:06pm
Below are the holidays for CFD trading in May.

http://i.imgur.com/XzKiTP7.png

Forex trading hours remain unchanged, opening on Sundays between 22:00 and 22:15 GMT and closing on Fridays at 21:55 GMT. For the holiday schedule for rollover interest (AKA swaps) visit the DailyFX Rollover Calendar.
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