Beginner question about MT4 and trading in General.

Hey, Im a new trader. Im doing just Demo right now and plan to keep it that way untill Im able to make a consistent profit there. But, I have a question. Im learning how to trade with the Vegas Wealth Builder on the daily chart as my foundation for my egy. Then Im studying Candlestick patterns in general to be aware of when to do the trades.

My actual question: In the MT4's trading terminal there's a colum named swap. What is this, can it be intrest the broker fees me? In the moment Im brief in USD/JPY and I have 34 pips in profit so far. The swap colum states -1.80 however, and it seems to eat out of my profit . Could anybody please explain this to me?

Thanks up front and sorry for my poor english.

Thanks for clearing up that.

By the way, Nybegynner, your English is perfect. English being a second language for me, I am quite sensitive to poor grammar, grammar errors, and overall sloppiness in written word, and I am telling you - that you do not need to worry a bit. In fact you may want to throw a mistake here and there to fit this forum... just kidding.

It's when you're excusing yourself that people start analyzing your speech skills...

Welcome to thenigeriaforextradingforum!

Dane

A swap is basically the interest charged or given on a open position. When there's a difference in the interest rate of among the currencies of a pair, then some open positions at the end of the trading day are subject to pay or get the difference in interest.

By way of example if you purchased USD and sold JPY open positions at the end of the day will earn you a good swap, because the USD interest rate is significantly higher compared to the JPY. If you offered USD and purchased JPY any open position at the end of the day will cost you a negative swap.

Best of luck.

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Originally Posted by ;

Hey, Im a new trader. Im doing just Demo at the moment and intend to keep it this way untill Im able to make a consistent profit . I have a query. Im learning how to trade with the Vegas Wealth Builder on the daily chart as my base for my own egy. Then Im studying Candlestick patterns in general to know when to do the transactions.

My real question: At the MT4's trading terminal there's a colum named swap. What is this, is it intrest the broker charges me? At the moment Im brief in USD/JPY and I've 34 pips in profit so far. The swap colum states -1.80 though, and it seems to eat out of my profit . Could anybody please explain this to me?

Thanks up front and sorry for my poor english.

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Hello Ny,

First, your English is Fantastic. You don't have to apologize for something that great!

Second, Mishnas gave you a good answer, but I wanted to mention that some brokers charge you interest even when they are supposed to be paying you. Depends on the broker and sometimes in your account size or lot dimensions.

Allow me to know if I can be of any help to you.

Dial