Equity-Gaps in Daily Statement

Fernando Carreiro  
toyfoxx: Hello @ all, in the last few weeks I have noticed that my equity drops sharply before the weekend after the close of trading. Monday everything is ok again. How do these gaps come about? Have somebody an idea or solution?

Your equity can drop if you have open sell positions, where the spread widens. It can also happen due to swap costs depending on the contract specifications.

However, for both costs, it is usually negligible if using proper risk management and position sizing. But in your case, you seem to be using a very high deposit load. That is very risky.

toyfoxx  
Fernando Carreiro #:

Your equity can drop if you have open sell positions, where the spread widens. It can also happen due to swap costs depending on the contract specifications.

However, for both costs, it is usually negligible if using proper risk management and position sizing. But in your case, you seem to be using a very high deposit load. That is very risky.

Hi Fernando, I look forward to hearing from you. I only trade gold, for weeks I've been hold 42 lots long/42 lots short. This always results in swap costs of around €60 per night. But that doesn't explain the drop. Or do I calculate the swaps wrong?
Fernando Carreiro  
toyfoxx #: Hi Fernando, I look forward to hearing from you. I only trade gold, for weeks I've been hold 42 lots long/42 lots short. This always results in swap costs of around €60 per night. But that doesn't explain the drop. Or do I calculate the swaps wrong?

42x2 lots is way to high for your balance.

Right now on my ECN account, XAUUSD has a spread of 270 points, which is equivalent to $27 per lot, and in your case that would be $1134 for 42 lots. On one of my non ECN accounts, the spread is 430 points, or $43 per lot, which would make it $1806 for 42 lots.

Judging from your image of your equity, with a current balance of approximately $7500 (assuming USD or EUR which is close in value), that is over 15% and 24% respectively just for the spread. That is way to high.

And all this is not even mentioning the required margin that is build up with 2 x 42 lots.

You are trading recklessly, and probably doing grid hedging which can easily just blow your account.

toyfoxx  
Fernando Carreiro #:

42x2 lots is way to high for your balance.

Right now on my ECN account, XAUUSD has a spread of 270 points, which is equivalent to $27 per lot, and in your case that would be $1134 for 42 lots. On one of my non ECN accounts, the spread is 430 points, or $43 per lot, which would make it $1806 for 42 lots.

Judging from your image of your equity, with a current balance of approximately $7500 (assuming USD or EUR which is close in value), that is over 15% and 24% respectively just for the spread. That is way to high.

And all this is not even mentioning the required margin that is build up with 2 x 42 lots.

You are trading recklessly, and probably doing grid hedging which can easily just blow your account.

Thank you for your answer, I appreciate it very much. My broker does not calculate the swaps by points but as a percentage of the lots.

What is better, per lot or per points, I don't know. 

Files:
Swaps.JPG  60 kb
Fernando Carreiro  
toyfoxx #: Thank you for your answer, I appreciate it very much. My broker does not calculate the swaps by points but as a percentage of the lots. What is better, per lot or per points, I don't know. 

I was not talking about the swaps, but about the spread.

As for points or percentage on swaps, in does not really make much difference. They are just different units. What matters is the value.

toyfoxx  
Fernando Carreiro #:

I was not talking about the swaps, but about the spread.

As for points of percentage on swaps, in does not really make much difference. They are just different units. What matters is the value.

But the spreads only apply when I buy an order?
Fernando Carreiro  
toyfoxx #But the spreads only apply when I buy an order?

No, they also matter when you close a sell position and I stated that in my very first post here — "Your equity can drop if you have open sell positions, where the spread widens."

  • A buy order opens at Ask and closes at Bid.
  • A sell order opens at Bid and closes at Ask.

That is why equity is affected when you have Sell positions open and the spread widens.

Reason: