What happens when I leave my forex position open overnight?

For long positions, traders may be required to pay an overnight interest fee. This fee is calculated using the overnight interest rate of the instrument and the size of the position held. The amount paid can vary depending on market conditions and the specific rates offered by the trading platform.

On the other hand, for short positions, traders may receive an overnight interest fee. This is essentially a reward for borrowing the instrument and selling it short in the market. The amount received is also calculated using the overnight interest rate and the size of the position held.

It's important for traders to understand how overnight interest fees work and factor them into their trading strategy. This can help them make more informed decisions about when to enter and exit positions, as well as manage their overall risk exposure.

When engaging in CFD trading and holding positions overnight, traders should be aware of the potential for interest fees to be incurred. These fees are charged based on the type of position held, either long or short, and the overnight interest rate associated with the specific instrument being traded.

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