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Full Version: Costs Facing Forex Investor
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The Forex market is a high liquidity market that allows you to make a profit in the short term, where you can invest even with low collateral. Forex, which is already investor-friendly with its leverage ratio of 1 to 10, dual trading feature and loss-stopping orders, has a loyal investor audience as it reduces the costs of investors who want to invest (invest) to the minimum level. As is known, forex market trading platforms are free. An investor can start investing by downloading this platform to his computer or mobile device. But before that, trial accounts reached by the brokerage firm, even certain forex trainings, are also free of charge.

In addition to these applications, which make it easier for the investor to start trading, there are also low forex costs. Although these costs do not appear as a burden to the investor, it is useful to know. Let's take a look at the spread and swap costs that a Forex trader will face during trading.


Swap Cost

Depending on the difference in interest between the currency pairs you have invested in, the overnight cost of carrying is a swap, which is reflected in your account as plus or minus. In other words, if you have decided to put the high interest one of the two currencies into the market and apply the idea of keeping the low interest one in your hand, the overnight cost of carrying the low interest money will be reflected in your account. Swap prices are valid for overnight jobs, transactions that are not closed on the same day and transferred to another day. Forex market investors who do not accept the cost of carrying per night can open a forex account without a swap. This option is usually the choice of investors who want to avoid interest.

Spread Rates

"Spread forex, a forex term that refers to the difference between the purchase price and the sale price of an exchange rate, is shown between costs. Yes, there is no commission practice in forex trading in any way. But the difference between the Buy-Sell price that the investor pays when trading occurs as the transaction cost with the name spread. When a new transaction is entered in the Forex market, it starts with a loss as much as the spread. Sperad does not have a certain ratio. Rates vary by liquidity. But some brokerage firms also use fixed spreads in their investment products. It is important to work with brokerage firms with a low spread rate in your Forex investments. Because brokerage firms that offer a low spread rate allow you to trade with non-high buy-sell differences and reduce your costs.