Of course, if you build and close the position on the same trading day, there will be no overnight interest.
When we deposit money in a bank, we earn interest on deposits, while when we borrow money from a bank, we earn interest on loans.
That’s right. When you buy /, you are buying (depositing) euros and selling (borrowing) dollars to pay for the transaction.
When the customer holds the order overnight, the overnight interest will be generated. The overnight interest can be positive or negative. A positive value means you can earn a certain amount of overnight interest, while a negative value means you have to pay a certain amount of overnight interest.
Why is there a plus or minus?
Each transaction involves two currencies, each of which also has its own interest rate. When you buy the currency at a higher rate than you sell it, you earn overnight interest (” positive overnight interest “).
But if you buy money at a lower rate than you sell it, you pay overnight interest (” negative overnight interest “).
So overnight interest may increase your transaction costs, but also may increase your profits.
The market played a rising “chorus” of the US trade deficit record high CPI may detonate the big market.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.