carry trading Foul play? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Carry trade vs carry trader 3 replies

Carry Trading Question 2 replies

Carry Trading 2 replies

carry trading with broker 15 replies

Currency Basket and Carry Trading 51 replies

carry trading Foul play?

  • #1
  • First Post: Dec 13, 2006 4:52am Dec 13, 2006 4:52am
Say I open aud/jpy long and keep it there. Whether its up or down , I collect interest daily. Some people say that broker will close this trade on their own or even close your account. Is it true? If yes, what can you do?
  • #2
  • Dec 13, 2006 6:20am Dec 13, 2006 6:20am
This is the same with nearly all pairs. If I open a EURUSD short, I collect interest daily whether it moves up or down. The problem is if it moves up . The interest is not enough to justify opening a position only for that reason. And no, I do not think that the brokers will close your position because they are scared of 0.96% or whatever it is these days.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #3
  • Dec 13, 2006 10:17am Dec 13, 2006 10:17am
its 4-5 times more on aud/jpy. Plus leverage.
  • #4
  • Dec 13, 2006 10:24am Dec 13, 2006 10:24am
no free lunch in forex
  • #5
  • Dec 13, 2006 11:07am Dec 13, 2006 11:07am
Who asks for a free lunch? If they will not steal mine that would be just great.
  • #6
  • Dec 13, 2006 4:39pm Dec 13, 2006 4:39pm
I honestly don't think the brokers are going to secretly close your trades because of the 4-5% interest. There are enough bad traders to offset your interest. Also, this is great if the trade moves your way or even stands still, but what if it moves the wrong way??

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #7
  • Dec 17, 2006 8:11pm Dec 17, 2006 8:11pm
Brokers also EARN on the swaps.

A GBPJPY swap is about $25 daily; some brokers only give you about $22 and pocket the remainder. If you were to short, the broker pays $25 to the banks BUT charges you more than $25.. so the broker still earns.

They will close ONLY if your position is SWAP NEGATIVE and your account is Interest Free.
  • #8
  • Dec 18, 2006 10:44pm Dec 18, 2006 10:44pm
Quoting andersenws
Also, this is great if the trade moves your way or even stands still, but what if it moves the wrong way??
If you keep a low leverage you shouldnt care where does it move. In the worst case, it should take , say, a year of collecting interest to recover from a bad move. Well, theoretically.
  • #9
  • Last Post: Dec 18, 2006 10:46pm Dec 18, 2006 10:46pm
Quoting BurgerKing
Brokers also EARN on the swaps.

A GBPJPY swap is about $25 daily; some brokers only give you about $22 and pocket the remainder. If you were to short, the broker pays $25 to the banks BUT charges you more than $25.. so the broker still earns.

They will close ONLY if your position is SWAP NEGATIVE and your account is Interest Free.
Well, Oanda claims that they pay all the interest out of charging other "playeres" an interest or from their own funds. I'd be happy if your numbers were real.
0 traders viewing now