Warning to Carry Traders (Perfect Hedge) - Page 2
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Thread: Warning to Carry Traders (Perfect Hedge)

  1. #11
    The futures value has the interest factored into the price so you'll be paying it anyhow.

    Simon

  2. #12
    Is this a realistic method of trading to catch daily interest?

    Can there be a more balanced strategy which can be accomplished solely at Oanda so that FXCM and also the religious-belief waiver, etc., don't come into play?

    Either way, I am very interested... It is one of the couple, non-trader systems I can understand, and I really am confused over traditional ways of seeing trends, etc..

    Please allow me to know, as I'd really like to learn more!

    Cet.

  3. #13
    I think I have mentioned before that IMO, the USDJPY(extended ) is your best pair to try and take of advantage of rollover interest. This is particularly true on wednesday's when interbankFX (and some of the other brokers) pay triple interest, which would be $3.10 per min lot. The spread is much tighter on USDJPY than some of the additional JPY crosses. With IBFX you simply need to possess the position opened before 4:59 PM (EST), then it is possible to shut it a few of minutes after 5:00 PM (EST) if you simply want to earn the interest. The question is: what's the best way to market in order to protect the downside if one needs to hold the position further into the oriental session or longer duration?

    Thanks;

  4. #14
    John,

    The interest that you get would not even cover the spread. It requires about 1 day of curiosity to cover 1 pip. The spread will be 4-8 pips depending upon your broker so it will not work.

    Simon

  5. #15
    Quote Originally Posted by ;
    John,

    The interest that you get wouldn't even cover the spread. It takes about 1 day of curiosity to pay 1 pip. The spread will be 4-8 pips depending upon your broker so it will not work.

    Simon
    Simon;

    Just a thought. This interest item is actuallyn't something. You might want to have a look at my thread. That is where my efforts are being concentrated. By the way, IBFX includes a 3 pip spread for usdjpy and FXDD includes a 2 pip spread. Oanda may be tighter.

    John

  6. #16
    Hi everyone, this is a very interresting situation. Pretty genius to make interest on margin cash? (is that the basic principle that we are referring to here?) . I have thought about doing this, but maybe not b/c of the interest but I wished to go short and long onto a pair just to make money on breakouts. However, everytime I try to buy and market a pair, they wind up shutting each other out and im stuck paying the pip spread. I am really on a demo account... if that will help answer any questions.

    Thank you Beforehand

  7. #17
    Oh yeah I forgot to say, I'd place stop losses on the two places.
    Thanks.

  8. #18
    Quote Originally Posted by ;
    Hello everybody, this is a very interresting scenario. Pretty genius to earn interest on margin money? (is this the basic principle that we are referring to here?) . I've thought about doing this, but maybe not b/c of their interest but I wished to go short and long on a pair just to make money on breakouts. However, I try to buy and sell a pair, they wind up closing each other out and im stuck paying the pip spread. I am on a demo account... if that helps answer any queries.

    Thanks in advance
    Which broker use?

  9. #19
    Hello phildunn,

    thanks for responding, sorry im not sure if there's a broker, im not technical savvy,

    This is where I login
    http://www.fxtrade.com/fxgame/
    it's only a free demo I signed up for at oanda I think.

    Thanks again,

  10. #20
    Does they understand that you're working to hedge for swaps? Can there be a computer that will ch the operations from some people or perhaps brokers are sitting at the forums and read?

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