What is innovation in forex trading?

What is innovation in Forex trading?

Extension is a process of closing the center or a trade open at a certain date in order to open it to the date of the next day, which is also known as the carry trade process, any Swap transaction or Forex trading to another value date centers, where it is in case of entering the open position the next day be charged extension, according to the company's intermediate terms and conditions agreed upon prior to the transaction, which will result in a discount or increase on the Forex trading account, where it depends on the currency in the pair trading as well as on whether the transaction is the sale or purchase of, and should be noted that the cost of the extension is the cost paid by rolling or take in the event of a deal left to one or more open for the next day which is not a commission fixed but vary from deal to another.

How is calculated extension in Forex trading?

The method used in the process of calculating the value of the extension, or what is known as fee extension is to rely on the interest rate between the two currencies in the user currency pair in the transaction, where the value will vary from deal to another and according to its kind Ferssom Swap Deal US dollar selling against the yen differ is not the fees in the purchase deal for a couple of the Canadian dollar against the Japanese yen, which indicates that the cost of the extension depends on the interest rates of the currencies in the extension period ie variable also, in the case he had a rolling deal to buy a particular currency pair when the first currency greater benefit of currency second, the brokerage firm will add to his account as Almsttmerfy Forex trading is happening in this case, the increase is not an opponent, and vice versa in case I had a rolling sale, but if the investor owns a deal to buy a particular currency pair which was interest on the first currency less of interest on the second currency, it will be debited from his account and vice versa in the case had a deal to sell to the same pair.

The importance of the extension in the circulation of the forex market

As we have stated repeatedly in previous articles, the Forex market differs from other financial markets in terms of trading method, as well as trading and the volume of transactions and the possibility of buying and selling time plus it contains many features that make it ranks leadership among financial and most liquid markets, However, in the other hand and at the same time is distinguished from other frequent moves and volatility, as it is assumed the follower of the Forex market trading to not lose sight of any of the matters relating to this market and in which we find, including the cost of the carry trade, which is one of the important things in the trading process and perhaps see some traders, especially novices were negligent about and commit some mistakes that could cost them a lot because of the lack of