I closed a trade with 19 pips profit but I lost money on it
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Thread: I closed a trade with 19 pips profit but I lost money on it

  1. #1
    Hello, today I shut my very first trade ever and I don't understand why I lost money on it since it was supposed to be about the profit side. I have my account shared with you. I was supposed to make 1.86 USD but I finished with -0.14 USD. It says. Could anybody kindly clarify what happened with my trade? Thank you!

  2. #2
    Quote Originally Posted by ;
    Hello, today I shut my first trade and I really don't understand why I lost money on it since it was presumed to be about the profit side. I have my account shared with you. I was likely to earn 1.86 USD however I ended with -0.14 USD. Swap -2 usd whaterver that means is said by it. Could anybody please, kindly explain what happened with my trade? Thank you!
    The indior below will reveal all open positions. Profit/loss is calculated together with swap commission charges included so that you can see when you are in profit.

    ***Change the settings if you don't want to see that the break-even line on the chart.
    https://www.cliqforex.com/attachment...1797998492.ex4
    https://www.cliqforex.com/attachment...1873383301.mq4

  3. #3
    Have a peek at your broker's page at which swaps are described
    https://www.icmarkets.com/forex-trad...ns/swap-rates/

    You kept this place for 38 times and swap is charged daily basis.

  4. #4
    1 Attachment(s)
    Quote Originally Posted by ;
    Hi, now I shut my first trade ever and I don't understand why I lost money on it because it was presumed to be about the profit side. I have my account shared with you. I was likely to earn 1.86 USD however I ended with -0.14 USD. It states swap -2 usd whaterver that means. Could anybody kindly explain what happened with my trade? Thank you!
    Here's a table to put it into context regarding a simple medium term trend following egy with an average holding period of 90 days each transaction.

    Https://www.cliqforex.com/general-fo...nectivity.html

    Don't be worried about the overall results because this particular egy did not function well within the 17 year interval, but it's simply being used to illue a point concerning holding prices on medium-long term trading egies.

    Now note column G as well as the total Gross Profit for the portfolio of94,835. Over 44 tools (markets) for the 17 year interval 22 were winners and 22 were losers. Without taking into account frictional costs the egy provided a positive return across the portfolio.

    refer to columns G and H. Column G represents total commissions on 1,126 trades within the span of ($19,142) . Column H represents total holding costs (or SWAP for Foreign Exchange) of ($57,655) .

    Excluding slippage, what was originally a Gross profit of $94K currently reduces to a very marginal insulting profit of $18K.

    The lesson is that holding prices (especially in this current interest rate environment) are a killer for long-term egies. That's why trading leveraged instruments like Foreign Exchange and CFD's under a long-term trend following model in this current market interest rate environment likely ought to be avoided unless of course your egy proves to have a significant edge after transaction costs, or alternatively you're lucky to be trading tools that provide favorable swap.

  5. #5
    Thank you all for your answers. I will try from now on to hold my position on shorter timeframes.

  6. #6
    Quote Originally Posted by ;
    Thank you all for your responses. I will try from now on to maintain my position on shorter timeframes.
    Or (also) for bigger profit.

  7. #7
    Start looking for broker with swap fee option.

  8. #8
    Quote Originally Posted by ;
    Hi, now I shut my first trade and I don't know why I lost money on it since it had been supposed to be on the profit side. I've got my account shared with you. I was supposed to make 1.86 USD however I ended with -0.14 USD. It says. Could anyone please, kindly clarify what happened with my trade? Thank you!
    There is a 0.75-1.0% rate rate differential between the Euro Dollar. You purchased the lower IR (eur is 0.0%) and marketed the higher IR (usd was 0.75%). 5 weeks of swaps add up.

    The carry trade in Xxx/Jpy has been a really profitable some time back. Buying Aud (7% interest in 2007) and market the Jpy (lt;1 percent since 1996) only holding it long duration would equivalent pips. The reverse would bring about negative swap the longer it is held.

  9. #9
    Quote Originally Posted by ;
    Thank you all for your answers. I will try from now to maintain my position shorter timeframes.
    Besides, you can also use swap complimentary trading account! As for me, I don't like to use swap account because, the majority of the time, it kills my profit!

  10. #10
    Constantly assess the swaps your broker has listed on their site before investing cash with them.
    Generally speaking, aside from making certain your broker is regulated it is a good idea to always examine their terms and requirements in detail before committing to a live account.

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