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Rollover

  • #1
  • First Post: Jun 11, 2006 2:59pm Jun 11, 2006 2:59pm
If you are a a intera-day trader you probably close your open trades within a few minutes to a few hours of openning it, but if you short-term trader you probably extend your open trade to a few days to a few weeks.

My question is most likely related to short-term traders. Do you consider rollover in your trades?

For example if the swap rate of your broker for EUR/USD is +0.70 for short positions and -0.80 for long positions is there a chance that you prefer short positions to long positions?

My second quesion is that have you ever tried to benefit from rollover when the market is in trading range? Does it worth it?

Thanks
  • #2
  • Jun 12, 2006 9:58am Jun 12, 2006 9:58am
any ideas to share?
  • #3
  • Jun 12, 2006 10:33am Jun 12, 2006 10:33am
I have done it on the US/JPY where I go long every time it takes a dip. I stop doing that after the large drop and may start doing it again at the next cycle, not the current one where it does look like it may keep rising like before.

I do take the swap into consideration because Oanda charges by the minutes and it can be costly. I tend to close my long position earlier on the eur/us and never hold it over the weekend.
  • #4
  • Jun 12, 2006 10:58am Jun 12, 2006 10:58am
For me when I trade majors ie Euro, Cable, Yen or Swissy; rollover fees is irrelevant. I target the principal amount and interest payout/payin at the end of the day is totally irrelevant.


But when trading cross pairs/AUD pairs/high interest pairs, it only comes into consideration when I am stuck in a loss making transaction and interest payout is large everyday. I may exit and book loss in such a case, but if interest payout is positive I may further float the position. But seldom I take rollover fees a criterea for entering a trade.
  • #5
  • Jun 12, 2006 11:08am Jun 12, 2006 11:08am
thanks nitman



Quoting nitman
I have done it on the US/JPY where I go long every time it takes a dip. I stop doing that after the large drop and may start doing it again at the next cycle, not the current one where it does look like it may keep rising like before.

I do take the swap into consideration because Oanda charges by the minutes and it can be costly. I tend to close my long position earlier on the eur/us and never hold it over the weekend.
  • #6
  • Jun 12, 2006 6:12pm Jun 12, 2006 6:12pm
Hello,

I didn't consider swop with short term trade but only for long term trade. As my short term trade, it is either long or short done by computer, the interest tends to cancel it out.

However I do still hold a Euro short at 1.28 that I placed 14 months ago when US's interest rate is more than euro - and earned around 20% interest overall (without counting the PIPs since I am still holding it and euro may still come back to that level)

Hope that helps
  • #7
  • Last Post: Jun 12, 2006 6:24pm Jun 12, 2006 6:24pm
Puppy,

Thanks for your post. I think this is probably the answer that I was looking for.




Quoting Puppy
Hello,

I didn't consider swop with short term trade but only for long term trade. As my short term trade, it is either long or short done by computer, the interest tends to cancel it out.

However I do still hold a Euro short at 1.28 that I placed 14 months ago when US's interest rate is more than euro - and earned around 20% interest overall (without counting the PIPs since I am still holding it and euro may still come back to that level)

Hope that helps
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