EURUSD payout on long-running short | Forex Factory

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EURUSD payout on long-running short

  • #1
  • First Post: Aug 2, 2015 3:18pm Aug 2, 2015 3:18pm
Hi, I've not done any live or demo trading. I just want to ask:

Suppose I went short on EURUSD late last year when EURUSD was around 1.25 etc, because I just suspected the Greece thing would hurt the Euro.

Is it feasable that I could have had such a trade open for the last few months, and that the broker would pay out on it?

Assuming my account was large enough , and leverage low enough to handle interim functuations,
does that mean my account would have increased significantly due to this one trade?

Would a MM broker that hedged me payout?

Or do brokers claw back enough via swap/commission etc?
Have people made silly amounts of cash from swing trade on the recent EURUSD trend?
Or is it easy for small reversals to wipe out leveraged accounts , on its way down...
  • #2
  • Aug 3, 2015 3:12am Aug 3, 2015 3:12am
Quoting ydrol
Hi, I've not done any live or demo trading. I just want to ask: Suppose I went short on EURUSD late last year when EURUSD was around 1.25 etc, because I just suspected the Greece thing would hurt the Euro. Is it feasable that I could have had such a trade open for the last few months, and that the broker would pay out on it? Assuming my account was large enough , and leverage low enough to handle interim functuations, does that mean my account would have increased significantly due to this one trade? Would a MM broker that hedged me payout? Or do...
Very good and important question. First of all, if you would have a short position at 1.25 you would have about 10, 20k Profit now, based on how many lots you used. The broker payout is not a problem, they always pay out profits. However, most traders, especially retailers do not have the patience and are too stubborn to keep positions open over an extended period of time. They think that they have to become millionaires next week.

The only thing you mentioned that could become a Problem is the swap, which is applied to the currency pair each night. This swap is different from Broker to Broker.

CMC Markets had a very innovative solution in that regard. For each trade, you can set the leverage from 1 to 400.

If you set the leverage to 1, you are paying the position in cash with leverage 1:1. For example, for a 0.1 trade (1 pip per EUR/USD = 1$), you would pay 10'000$ cash. That way, NO overnight swaps are applied to that trade, no matter for how long you hold the position. It's a concept I like very much, but I'm not sure if they still offer it, haven't used them for a couple of years.
Forex is a losers game.
  • #3
  • Aug 3, 2015 3:31am Aug 3, 2015 3:31am
Quoting ydrol
Hi, I've not done any live or demo trading. I just want to ask: Suppose I went short on EURUSD late last year when EURUSD was around 1.25 etc, because I just suspected the Greece thing would hurt the Euro. Is it feasable that I could have had such a trade open for the last few months, and that the broker would pay out on it? Assuming my account was large enough , and leverage low enough to handle interim functuations, does that mean my account would have increased significantly due to this one trade? Would a MM broker that hedged me payout? Or do...

Depends of the lot size and leverage you could add up enormously on your capital. This decrease were about 30% or more, traders make on 0.0001% fluctuations. Hard to believe that buy-n-hold strategy still proves to be valid even on Fx market.
  • #4
  • Last Post: Aug 3, 2015 3:41am Aug 3, 2015 3:41am
Quoting ydrol
Have people made silly amounts of cash from swing trade on the recent EURUSD trend?
Yes, this trade explorer fit your criteria (short and hold E/U, silly and spectacular result .. ) http://www.forexfactory.com/ngdmnd/00
I see it all in between ...
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