I wonder if you get better interest rates from buying currency futures where possible
did you do some research within these stocks and if so what's the difference in interest?
thanks
I wonder if you get better interest rates from buying currency futures where possible
did you do some research within these stocks and if so what's the difference in interest?
thanks
I actually didn'tOriginally Posted by ;
Its a good point however. Marked it . Should you get results, please post here.
Regards
Some more information:
Thus, you could be thinking about, why the equity is negative, actually its been around 2 weeks now?
Well, the answer is simple: The initial setup price.
In the time of buying/selling each pair, we needed to pay spread. In the time of the beginning of this portfolio, we've compensated : $6101 in spreads.
Aiming for $16K ($16245.6 to be exact) in interest, the portfolio has a whopping &6.28 percent yield in one year (at least in theory, until we have the Money from the bank, eh? )
Well, you may ask, again, why then the portfolio worth even went to $52K the other day? As I mentioned previously, the movements in the currency markets require a few times to flatten out. Thats why. Any gains/losses due to an appreciation or depreciation of a pair in worth should cancel out at the long-run.
Thus, considering this calculation:
Initial Cost = $6101
Interest earned a week 338.45
Week that the portfolio will be level = 18
Therefore, we ought to expect the portfolio to become level in value per week 18. Thats. And after that, we'll cash in $338.45 in interest.
Lets talk about any downsides, ideas, in the path into the carry portfolio.
Regards
Day 1:
We have reserved $9.67 in interest. (Can offer the breakdown later)
The portfolio equity is currently down about $700-800 because of short-term changes, but this ought to straighten out in the long-run.
The focus here would be to make the attention day in and day out. At its current rate, the interest alone should add up to $9.67 * 367 = 3520 per year, together with 9 stand lots open. (Currently that is a margin of about $7500 in US, $1875 in UK. Thats around 50% profit for margin in US, and 100% profit in UK, where max leverage is 1:400 for a reputable broker)
Lets see how it goes
Its interesting to see the shift from JPY based crosses to AUD, NZD and TRY based crosses.