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Brokerage Charges in Forex Trading || Basics of Forex || Anish Singh Thakur || Booming Bulls - YouTube
Channel: Booming Bulls
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Hello guys.
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My name is Anish Singh Thakur
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and welcome to the second video
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of the Forex series.
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Let me tell you
before making this video,
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I am wearing
such clothes because
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I was making a video
of meditation before this
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and I did not want
to change clothes,
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but making this video was
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very important for you,
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so I am making it because
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I have to upload it tomorrow.
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Okay. Let's come
back to the topic.
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This is the second video in the
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Forex Series. Why?
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Look, I'll tell you
in this video also,
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exactly what are
the charges that are...
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that you have to pay.
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What is the cost of doing business?
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What is the cost of
doing Forex business?
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I will tell you this in this video.
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Why will I tell you?
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Because the next video
is going to come directly
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that now we are
going to start trading,
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we are going to open
an account like this,
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in this way.
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In this way you
will also get payouts
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in India, that too
without any problem.
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In this way, you can
also make a deposit.
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It is a very good company
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in which we are going to work.
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But in any company or
whatever the company,
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if you do not know
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what is the cost
of doing business,
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then there is no benefit.
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Just like,
it is known in Zerodha,
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twenty rupees in
buy and in sell.
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It is known in abstract,
it is known in Kotak.
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You should know that here too.
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Let's start it.
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What is the cost of
doing Forex business?
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So, cost of doing Forex business,
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there are basically
three kinds of charges.
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So, first charge is
called brokerage.
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Brokerage basically commission.
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What commission does
your broker charge?
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This is your first fees.
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The second charge
is called spreads.
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And the third thing
is called swaps.
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These are three things,
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the first of which is
very easy, brokerage man.
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When you buy a lot
or 0.5 lot or 0.1 lot then
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you put 3 dollars,
5 dollars, 10 dollars.
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Different brokers charge differently.
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Some even make it
free for some time.
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So, there are brokers
like this too.
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So, first brokerage charges,
nothing special.
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You now know,
what is commission?
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What is brokerage charges?
That's set.
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Now, the second thing,
"Spreads".
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Now all the people
who are traders,
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you know,
bid and ask.
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The market depth
in the stock market,
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bid and ask is also here.
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Let's talk an example
of this iPhone,
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I want to sell it.
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I want to sell it
for one lakh rupees,
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so if I want to sell it
for one lakh rupees.
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But when I am going to sell it,
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I am getting 95000 in it
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and when I am going to buy it…
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Maybe I can do it
right-and-left in bid-ask,
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I am not giving
much attention.
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And when I am going to buy,
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I am getting it in one lakh.
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So, the difference
of five thousand,
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between bid and ask,
it is called "Spreads".
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The five thousand is the
difference between the price.
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Actually, five thousand
is a huge amount.
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The difference is in point-woint,
ten-fifteen paise-rupees,
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and in dollars only a few cents.
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So you understand, spread means,
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"The difference between
buying price
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and the selling price
is called Spreads."
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Now, the third thing,
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What is "Swaps"?
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This is a new thing.
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I will tell you all,
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what is swap?
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Swap is the cost
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of holding.
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What did I say?
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Cost of holding
the currency pair
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or Cryptocurrency will also
be available to trade,
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either commodity will be available,
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goldie will be available,
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everything will be found,
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index will also be available
for other countries.
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We will see.
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I will tell you
what is the list.
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Means, if you hold
any trade overnight.
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Overnight means,
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Forex market is open
for twenty four hours.
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Yes, open 24 hours.
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But here too, daily candle closes
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and new daily candle start.
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So whatever candle is
formed, it start,
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if you hold a pair
more than one day,
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you have to pay the interest.
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What interest you have to pay?
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I will tell you.
Okay.
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Every country has
a different interest.
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The central bank
of every country,
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like there are
RBI in India,
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they fixes our interest rate.
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If you go so much technical
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then you will get irritated.
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So I will try to explain you
in a simple language,
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in Hindi and English,
what happens?
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So, let's restart the swap.
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Swap means,
whenever you hold
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a currency for more than a day,
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you have to pay.
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Now, for example,
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If you talk about this pair
GBP/AUD,
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you trade on Australian dollars
Grade British pounds.
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What happens when you go
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long on GBP and
short on AUB?
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There is one thing.
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I bring you here quickly.
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I will write here
"global-rates.com".
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You have to open this website,
"global-rates.com".
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Come here.
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After coming here,
on this website,
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different countries...
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It is showing of Euro, Europe,
United States, Canada.
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You do not have
to see this much,
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just to give you
general knowledge,
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I am showing this thing.
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But from there,
I have set an example
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out of it basically,
so I am showing it.
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If GBP interest rate is 0.1% and
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the interest rate of AUD is 0.25%.
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So basically, we will do
substraction, 0.1%-0.25%.
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Then it will come...
this will be 0.15%, right.
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I had to write GBP here and
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AUD had to write here.
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So it will be -0.15%.
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This is called
"Negative Swap".
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Whenever Swap comes
in negative,
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you have to pay.
How much?
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For example,
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If you had taken a lot,
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you would multiply this thing
by one. Like this with 2, 0.5.
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This is a small calculation.
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Not a huge amount comes.
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Still I am giving an example.
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And if you do a good research,
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you will find it in Google.
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Let me give another
example of positive swap.
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Positive swap means,
sometimes in a few cases,
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if you hold the trade,
you get money.
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How do you get it?
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When a positive swap occurs.
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Positive swap means that
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if we go long at this pair,
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then the key interest rate of
Australian Dollars is 0.25%
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and the Euro's key interest
is 0%, for example.
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This is a another day's data.
It varies.
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So, 0.25%-0% is
equal to 0.25%.
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This is in plus.
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This is called
"Positive Swap".
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So here, you get money.
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Maybe something
must be understood,
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some may not.
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So understand this much that
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after the brokerage and spread,
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the swap can also take place.
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You can say this tommorow that
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what is this charge,
I don't know about this.
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So, now you know,
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there is something
called "Swap".
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There is Swap calculator also
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on the Google.
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If you google that,
you will also find it.
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I have simplified your life that
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there is also something
called swap
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and you have to
manage in this way.
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All three types of
charges are over.
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Now I will just
tell you that
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now we are going to start
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doing Forex.
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And when we start Forex,
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we have to know
everything about it
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and I think it's my
responsibility that I,
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because I have been
promising you people
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for a long time that
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I will bring the Forex serie.
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So I will bring every little thing
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that is really related to finance.
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Tomorrow, you should not
feel that you did not know.
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Okay. Now.
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Last, I will tell you
an important point.
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Wednesday is slightly different
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from the rest of the
days for forex trading.
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Why does this happen?
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What happens, Monday....
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Well I don't know
why Wednesday,
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why not Thursday-Friday.
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But what is special,
this day takes triple rate.
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They also takes swap charge
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on Wednesday and
charge two times more.
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One plus two. Why?
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Saturday-Sunday,
which is going to come
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in the future, they
deducts the charge first.
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Why do they deducted?
I don't know.
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So remember if
there is a trade
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on the day of Wednesday....
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That means,
holding on Monday,
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no problem.
It takes one day's charge.
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Holding on Tuesday,
no problem.
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It takes one day's charge.
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If we hold on wednesday,
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it will take three times the swap.
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So tomorrow you will
also have a doubt,
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why did I get
a higher commission
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on the day of Wednesday?
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Because wednesday
is a special day
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for forex trading and
there people takes
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Saturday-Sunday's charges already.
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Why do they take it?
I do not know.
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Still I told you.
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Tomorrow you will say that,
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it takes more money
on Wednesday,
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from the rest of the days.
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Because, Wednesday is a
special day for Forex trading.
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You get a different
charge on that day,
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for holding it overnight.
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Alright. I hope,
you must have understood
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what I wanted you
to understand.
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This was a very short video.
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It was important for me
to explain to you
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how and what
charges are there in it.
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So, the next video
directly is coming,
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directly I show you
the name of the broker,
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I will give you the link,
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I will give you all
the information that
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how to open an account?
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You can work in a simple way.
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And after that I definitely post
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some technical analysis tools also
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for the Forex trading.
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And I definitely put
some market analysis also,
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that these are the things
we can trade and all.
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I will also start that for you.
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Okay guys.
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So, I hope you are enjoying it,
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you are understanding it
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and you are like,
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ready for doing this new thing.
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Because if the margin ends,
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I have also talked
about leverage here.
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It does not get like this,
but good leverage,
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I will be helping you
to get in this.
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So that,
you can trade well
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with a normal capital.
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Alright then.
Thank you so much.
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Like the video
if you like it.
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And share it
with your friends.
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And definitely
subscribed the channel,
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if you have not done yet.
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Now, about next video,
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I see you very soon,
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like in 3-5 days
in my new video,
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where I am telling you
about Forex Broker.
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Thank you so much guys.
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Bye, bye, bye.
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I will see you soon
in the next video.
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