Thread: Warning to Carry Traders (Perfect Hedge)

Originally Posted by ;

if anyone is not convinced that carry trading is a plausable way to generate money, here is the proof.

Merlin,

Could that include a PICS, where one balanced different pairs in order to maintain the general swing within suitable limits and profit daily from the attention?

Can that breakdown finally, or could it be maintained?

Please advise!

Cet.

Originally Posted by ;

Merlin, let me clarify -- I think they just meant the non-interest accounts at FXCM are watched for sin. I think the regular interest accounts are not closed due to inactivity.

I think that depends on broker. Some brokers will give you a commision if you dont trade 10 lots a month.

Hi folks, I have added a bit on the carry trade in my journal thread which could be of interest. Lets see if I can get the link right.

Crown Foreign Exchange swap free

Originally Posted by ;

I have read in 1 e-book which carry trading works best if you'll add technical analisis for this. For example you should open positions for pairs which have a decent interest rate and price is over 200EMA. I have tested it and it works for 3 ema's - 100MA, 50 MA and 200MA.

Sometimes I get confused...

Lots of threads discuss super exotic ways of earning cash in forex as though those were the only opportunities to profit in the capital markets.

Here is one about opening in 2 borkers. . Then exchanging I dont understand exactly what a hell... and residing purely of this interest rate penalizes it.

Would not be easier to buy cheap and sell expensive? Isn't that the actual benefit of the capital markets?

Just hedge it along with your equity, it is saver

Originally Posted by ;

Will brokers withdraw non interest bearing accounts? I doubt it. Let us just think about how a broker handles their risk exposure. The broker will try to attain a neutral place. They'll bucket any transactions they could and when they see a substantial imbalance. OK let's assume that the whole retail spot forex trading community try this interest arbitrage trick. Rather than 50 percent of FXCM's customers being lengthy, and 50% being brief everyone's taking long trades as ideal hedges against interest bearing shorts at Oanda What can FXCM do in this circumstance, they are made to have a hedge brief, and of course they earn interest, which they get to maintain. So they receive the disperse, retain and they make to make the interest. They have to play with your cash whilst you play with virtual cash within the bucket store. Added to which a proportion of new traders will totally fail to manage positions accurately, or have funds to trade the method. Why wouldn't a broker want this type of business?

If you are long, this basically places them brief if they hold the other side of this transaction. So they must go long to hedge, to cancel their brief.

Or, you can look at it as, once a lot of longs were shot against them, they would pass along some or all the long positions to a bank so they weren't holding the contrary side of those transactions.

In their long positions, the broker will cover interest. They lose money, that they won't allow it.

Also, anyone I have heard of that did this had to lie to a single broker and say they had been Muslim in order to not be billed interest.

I believe if you lie for cash that would be fraud. Check with your attorney because I am not one and can't give legal advice to you.

Interesting egy.

This is possible in the event that you've got a liquidity provider on the center, I suggest, if there's someone compounding your liquidity.