Non-Trading Cash Flow From and to Your Account
Cash Flow

Cash Flow (CF) is the rise or decrease in the amount of money that a business, organization , or person has. The term is used in finance to define the amount of cash (currency) produced or consumed in a given period of time. There are several forms of CF, with different important uses for organization management and financial analysis.

Cash Flow
  1. Swap:
    The difference of interest rates of the pair you are trading in your account (swap doesn’t exist in the Islamic accounts).
  2. Commission:
    -Some brokers require fees to pay for trading, whether you trade with a million dollars or one dollar. They take commission for providing you the service.
    -Some take commissions depending on the volume of your trade.
    e.g.: If you trade with 1 Lot they take 100$, if you trade with 0.1 Lot they take 10$.
    -Some don’t take any commission at all. The broker profits from the spread between buying and selling prices
  3. Spread:
    The difference between ask and bid prices.
    e.g.: if you went to change a currency from a bank, you will find 2 different prices, one is high and the other is lower by a few Cents. This difference is called spread.
    When you start to open your trade, you will find it starts with negative (-).

When you enter the market you should know your broker very well.