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Currency Futures Day Trading, Open Trades, and Overnight Holding


#1

: what do clients do from 3pm to 4pm , assuming clients have some open trades on currency futures .

thank you.


#3

We assume you are moving from Spot FX to Currency Futures(?). We are not sure what they should do during that time. Are you concerned about SWAP Rates? Also, what time zone do you mea? EST, CST?

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.


#4

yes it’s est. do you ask clients to go Flat or close all open trades around 3 pm, I think around 3 pm CME closes… .what you guys recommend doing around 3 pm ? thank you,


#5

Thank you for the additional details. So just to make it clear, you need to be out by 5PM EST/4PM CST for a trade to be closed and considered a futures trading day trade. IF you have enough funds in the account you can hold the positions overnight.
Most Futures traders do choose to day trade not to be exposed overnight to risks associated with the Spot FX moving, hence affecting Currency Futures directly.

Thank you for your questions and I hope this was the explanation you were looking for.

Kind regards,
Matt Z
Optimus Futures
www.optimusfutures.com


#6

Thank you Matt, I think it’s a good suggestion., if there is enough money and the currency trader
decides to leave the trade open then what kind of additional charges or commission will accrue…for example will commission remain same ?


#7

II know this a bit outside the discussion of the margins, but you should know whether you are going to hold positions overnight or not. If you are stick to the risk management of day trading, then you should not stay overnight. While we are aware that there may be a situation where the market may extend its move, there is a one hour gap between the open and close of the CME (5-6PM EST, 4-5PM CST) where the market may open in a different direction that you anticipated. Also, keeping positions, in our opinion, overnight due to day trading losses may extend your losses. Swing traders typically should always be equipped with enough capital to endure the above. Day traders should stick to day trading; again this is in lieu of our experience and opinion.

The commissions for holding overnight may or may not be higher. This depends on the clearing firm, your “history” of adhering to the margins, and overall risk that you carry with your position relative to the equity in the account. So in essence, it does not have to be, but we consider the above.

Thank you,
Matt Z
Optimus Futures
www.optimusfutures.com