How to even out the broker commissions from your forex account


Today being a non-trading day, I thought of coming up with something that could help in making out maximum from your forex trading account, and also will help in recovering from your loss.

Many a times, the open deals remain open for more than 24 hours. And as any long term term trader would know, any deal that remains open after the EST timings, automatically accounts for additional brokerage charges.

Of course, if you have not achieved the desired profit levels, then your deal will not close at the set take profit levels. That is the reason I generally do not recommend keeping a larger take profit level. It not just increases your risk, but also ends up in taking lesser profits because of the additional brokerage charges deducted by your forex broker for each day the order remains open.

Yeah, I know that many a times I recommend taking longer profit levels, but in all such scenario I suggest increasing the levels of profit in accordance with the number of days the deal has been opened.

Like for example, if a particular deal remains open for 2 more days than its stipulated time, then I simply increase its profit levels by pips in accordance with its deal size. Like for a deal of 10,000 lot, for every extra trading day, I would increase the profit levels by 10 pips. Going by the same ratio, one could figure out the addition pips for all the deal sizes.

Hope this helps you in extracting maximum profits from your long open trades. It makes more sense to get more profits and keeping the losses to the low.

Happy trading and a happy weekend ahead !!!

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