Assalamu alaykom wa rahmatullah wa barakatoh,
A question regarding Forex Swaps:
I had an account with a broker, the account was not Swap-Free. Alhamdulillah I closed the account and seized Forex trading following the explanation of Ibrahim on how Forex CFDs operate, which by the way, is the clearest explanation I have seen to-date.
As you know, when trading forex and swaps are involved, there are positive and negative swap operations taking place on the account, and I need to know how to clean my money.
Here are some givens:
- The total balance of swaps is negative: total swaps - 653, positive swaps 631, negative swaps -1285
- I lost money from the initial capital, so there are no gains
- Started at $10,000, went all the way down to $3,500 and then back-up to around $6,000 when I closed the account and withdrew my capital.
My question: since the total swaps are negative, do I need to pay out the amount of $631 to clean my capital, or is it considered safe since in the end I did not “earn” any swap?
Jazakom Allah khayran.