The Forex is a market for the trading of global currencies. The market’s activity determines the foreign exchange rate for every known currency.
To trade on the Forex market, you will need to open an account with a certified broker or brokerage firm. Once your application is approved, you can transfer money into your new account and begin trading.
For example, if you move $1,000 to your account, then you have $1,000 to trade on the Forex market. Thus, the account balance is the amount of money available to trade for that particular day.
You can check the account balance online, app or by phone. Much like your checking or savings account, you will have to log in with a user ID and password that you have created. Once you have gain access, then you can check your account balance daily.
Swap and Rollover Fees
Your balance can only change in one of three ways:
- Adding more funds to the account
- Close all open positions or keep them open overnight
- Receive or pay the swap/rollover fee.
There is quite a difference between an open position that lasts a few hours and one that is kept open overnight. The latter is called a rollover or moving an open position from one trading session to the next. Typically, your broker will roll over all open positions by closing them at the end of the trading session. Simultaneously, then opening identical open positions for the next business day.
However, it is important to remember the account balance does not include any profit or losses you may have from an open position. An account update will not be available until all open positions are closed.
Actions That Take Place During a Rollover Period
During this rollover period, a swap fee will be charged to your account. The amount will either be a plus or minus to your account balance at the end of each trading session. The swap fees are minimal, but they do add up over time. Experienced traders have balance protection attached to their trading account. It protects them from losing more money than originally deposited into their account. Over time, an account holder will have to deposit money into their account to cover any losses before they can open another open position.
Disclaimer: All information provided here is intended solely for study purposes related to trading financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity, analysis, or similar general recommendation regarding the trading of investment instruments. The content, in its entirety or parts, is the sole opinion of SurgeTrader and is intended for educational purposes only. The historical results and/or track record does not imply that the same progress is replicable and does not guarantee profits or future profitable trading records or any promises whatsoever. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose.