So can I set it up so 1 pip = 1 dollar?

Quote from IronFist:

You guys helped answer my questions. Thanks.

I read something on Oanda's site about if you want to hold positions overnight* you're supposed to sell them and rebuy an identical lot? What is that all about?




*I thought FX was open 24 hours a day. How are there "overnight" positions, anyway?
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No nothing to worry about on your part, it's all automatic...

The markets are 24 hours, overnight really would depend on what session exchange you were trading on...ie

If you were trading the New York session, and held over after the "close" until the next new York session, that would technically be overnight..

Really the term is best described in futs markets where there are set hours for each exchange...

With spot fx, it's really irrelevant, nothing to worry about Oanda calculates interest by the second, and once you open a position, it remains open until you close it. Nothing to worry about.

Their main gripe is how interest is calculated with overnight positions in conventional markets, which is why they calculate interest by the second, but I know for a fact you don't have to do any rollovers or anything of the sort whatsoever if you want to hold a position over multiple sessions.

If that didn't clear it up, let me know and I'll try to clarify...hope it helped.
 
Two more questions:

1. How do taxes work with Forex profits? Does your broker send you a statement at the end of the year? Is it just profits minus losses? Do you have to itemize every trade out like you do with stocks?

2. Why does Oanda want to know who my employer is when I go to set up an account? And why are they asking my total net worth? Can I leave those fields blank? I'm pretty sure that's none of their business.
 
Quote from IronFist:

2. Why does Oanda want to know who my employer is when I go to set up an account? And why are they asking my total net worth? Can I leave those fields blank? I'm pretty sure that's none of their business.
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It's all about Know Your Client. Just fudge it a bit, say you are self-employed and worth $100,000. I don't think they will accept your application if those fields are blank.
 
Ah. I guess that makes sense. The only other brokerage account I've opened was with Scottrade and I don't remember them asking me that.
 
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