{"id":163468,"date":"2020-01-17T13:21:58","date_gmt":"2020-01-17T18:21:58","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163468"},"modified":"2020-01-17T10:23:57","modified_gmt":"2020-01-17T15:23:57","slug":"how-long-can-a-forex-trade-stay-open","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/how-long-can-a-forex-trade-stay-open\/","title":{"rendered":"How Long Can A Forex Trade Stay Open?"},"content":{"rendered":"
January 17, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

As a general rule, there is no limit to how long you can keep a trade open.<\/p>\n

Some brokers might put limits, but any reputable Forex brokers won\u2019t. As long as there is a market, theoretically, you could keep your trade open forever.<\/p>\n

Now, just because you can, it doesn\u2019t necessarily mean it\u2019s a good idea.<\/p>\n

Especially for most FX traders who are in the market to make money off of changes in value in different currencies.<\/p>\n

You don\u2019t \u201ccash in\u201d until you close a trade, so at some point, you\u2019re going to have to do that in order to make money.<\/p>

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Is There a Reason to Keep Trades Open for a Long Time?<\/strong><\/h2>\n

Yes. Well, there was, but with interest rates around the world going to near zero, the motivation has virtually vanished for most retail FX traders.<\/p>\n

With larger interest spreads, some traders would engage in carry trading as a form of making a profit from their account.<\/p>\n

How this works is depending on the interest rates of the currencies being traded, you can be paid a \u201crollover\u201d interest on your margin.<\/p>\n

If the interest rate differential is big enough, and the currency is relatively stable, you can make a steady income from the trade. So, those carry FX traders would keep their positions open for extended periods of time, up to years.<\/p>\n

Speaking Practically Today?<\/strong><\/h2>\n

Unless you are into carry trading, there isn\u2019t much practical reason to keep a trade open for really long periods of time.<\/p>\n

You\u2019re generally looking to get a profit from a move in the Forex market, and once that move has completed, you\u2019re going to close the trade.<\/p>\n

That can take different amounts of time depending on your trading style:<\/p>\n