What is the Advantages of the Extension in the Forex market?

In the spot market, all transactions must be settled within two business days. Extension refers to the process of closing of an open center at the date of the present day value and opening the same center at the price which reflects the difference in the interest rates between the two currencies .

Compliance with international banking practices, Forex brokers extend to the entire open trading positions automatically to the next time at the fifth hour of the east coast of the United States time.

Extension includes swap trading open center for exchange expire at the next settlement date. For example, for trades executed on Monday, the value date is Wednesday.

However, if the trading center open on Monday remained open until the night so the value will be on  Thursday. The only exception is in the case of centers  that remain open on Wednesday night. The usual date of the value should be on Saturday, but because the banks are closed on Saturdays, the date value will be particularly to  the following Monday. Due to the presence of weekends  the open trading centers on Wednesday evening commit or earn interest on the two additions.

Transactions whose date value are on holidays will also commit or earn a profit or a further gain. Forex traders can enjoy the benefit of the extension in the direction of their trading centers and the differences in interest rates between the two currencies in circulation.

For example, the basic interest rate in the UK is higher than in Japan, if the trader bought pounds, he will earn interest 17:00 ET. On the other hand, if he sold pounds in this pair , he will pay interest at 17:00 ET.

Configuration Utility automatically pays the customer's account after buying the currency with a higher interest rate in its country, and will be deducted from the customer's account, if the country issuing the currency base rates provide less currency.