What you guys don't understand is that when you trade currencies, you're not actually holding euros or holding yens or pounds...you're holding dollars at all times but have a claim or forward claim on these currencies. Forex brokers are not good for longer term investments as your spot gets rolled every two days to tom/next and usually u pay some serious spread. As to the TYL, you can't trade it retail. Everbank seems like the best way to go.
I disagree, s[TR]. On spot, my Exposure stats are very clear. It shows that I do indeed "hold" the currencies in trade. I'm grant you the benefit of the doubt until I do further reseach but my understanding has always been that I take actual real-time positions in these foreign currencies at the time I enter the buy/sell positions on them. And, about roll-over, I take no hit at all with my broker, on spread or otherwise. I do get paid interest by the second though 8760 straight uninterrupted hours a year based on the currency I hold in open trade. Regarding TYL, I didn't want to trade it. I wanted to convert some USD into it then hold it. Saham
You never actually take delivery of these currencies, they just get rolled over day after day. It's not like you actually have a Euro balance... Spot is just today +1 or +2 days forward. Oanda is pretty good about this interest thing but it boils down to the same daily money market differential interest rate that you would get otherwise.
Guys, s[TR] is a perfect example of why you should not take everything that is posted on a message board as fact without confirming statements yourself whether they are true or false. No offense, s[TR]. You're also presuming OANDA is my broker, I never said that. The subject is closed. s
Come on Skalpz, you're not gonna teach me foreign exchange bud. You're the only one who presumes to know everything. I'm just stating the facts; whether or not Oanda is your broker is not the point... I assumed it was as I did not know of any other broker who did continuous interest payments. Truth and the matter is, if you have a USD account, you will never actually own euros/jpy/gbp; that's a fact. You do have a forward claim on these currencies though.
From Oanda website; guess skalpz could be a little enlightened: The currency exchange market described above is referred to as the spot market and the transaction described is referred to as a spot deal. A spot deal consists of a bilateral contract between a party delivering a specified amount of a given currency against receiving a specified amount of another currency from a second counter party, based on an agreed exchange rate, within two business days of the deal date, which is referred to as the settlement date. (The settlement date for USD/CAD is one business day after the deal date.) Speculators rarely deliver, however. Instead, they use what is referred to as a rollover swap. The rollover swap is designed to allow the changing of an old deal date to the current date by simultaneously closing an open position for todays date and opening the same position for the next day at a price reflecting the interest rate differential between the two currencies. So unless you take delivery; which is fine by me, I don't think so.
Since you think you know so much, tell me how to scalp 1000-pips off of EUR/USD in 8 to 12 hours, when that pair moves 75 to 100 tics. Let it go.... Saham
You and your rubbish skalp; how bout you tell everyone how much you swing so we can have a collective laugh. Yeah, blah blah, is that a defense mechanism 'cause your wrong?
The rollover allows you to keep your position active. At Oanda no fees apply to this rollover if I'm correct. So holding currency long term at a FX broker is indeed possible.