Okay this idea is obviously not original however i will admit i can't understand why it won't work. I must be missing something since no one talks about it so i hope someone can point it out.
You open two accounts. Account 1 with a broker that pays good swap. Account 2 is with a broker that pays no swap. You fund each account (probably a minimum of 5k, the more the better) and then on account 1 you go long on a carry trade position, lets say GBY/JPY for the sole purpose of collecting interest. Then at the same time you place a trade on the same pair only a short on account 2 where you pay no interest. Then all you do is hold you position until one of your accounts is in large draw down or even margin call. At that time you simply transfer funds out of the account that is low from the account that is in profit. You cannot lose in trade and you always collect interest.
So why is not everyone doing this? Especially if you have more money, it is risk free as far as i can tell as long as your broker does not go under.
You open two accounts. Account 1 with a broker that pays good swap. Account 2 is with a broker that pays no swap. You fund each account (probably a minimum of 5k, the more the better) and then on account 1 you go long on a carry trade position, lets say GBY/JPY for the sole purpose of collecting interest. Then at the same time you place a trade on the same pair only a short on account 2 where you pay no interest. Then all you do is hold you position until one of your accounts is in large draw down or even margin call. At that time you simply transfer funds out of the account that is low from the account that is in profit. You cannot lose in trade and you always collect interest.
So why is not everyone doing this? Especially if you have more money, it is risk free as far as i can tell as long as your broker does not go under.
