Overnigt swap and long term position ? | Forex Factory

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Overnigt swap and long term position ?

  • #1
  • First Post: Nov 21, 2007 6:53am Nov 21, 2007 6:53am
hello

i just want to know what is the advantage or desavantage to keep a position open the a long term period ?

thank you
  • #2
  • Nov 21, 2007 7:11am Nov 21, 2007 7:11am
Quoting phmadeira
hello

i just want to know what is the advantage or desavantage to keep a position open the a long term period ?

thank you
The daily rollover is paid or charged based on the interest rate differentials. For example if you are long on USD/JPY you will earn interest because the US has a higher benchmark rate than Japan. However, if you are short you will pay interest.
  • #3
  • Nov 21, 2007 7:18am Nov 21, 2007 7:18am
And for the Silver and gold, there is something ?
  • #4
  • Nov 22, 2007 11:38am Nov 22, 2007 11:38am
I think you would usually pay the swap if you are long and receive if u are short. I think the swap is closely linked to the amount you would get for holding the same amount in cash.
  • #5
  • Nov 22, 2007 11:13pm Nov 22, 2007 11:13pm
Quoting phmadeira
hello

i just want to know what is the advantage or desavantage to keep a position open the a long term period ?

thank you
I trade the 4 hr charts and sometimes daily. If i am long the GBY, that is to my advantage and i will gain the daily swap. If i am short (like i am now), i will pay the swap. But what i have found is that they are not a factor in if i trade or not. Let your system dictate what you will trade, if you have to pay a little swap, so be it....

Good tradingl

Jimno
  • #6
  • Nov 23, 2007 4:03am Nov 23, 2007 4:03am
thank you for your answer
  • #7
  • Last Post: Nov 23, 2007 8:41am Nov 23, 2007 8:41am
Quoting james275
I trade the 4 hr charts and sometimes daily. If i am long the GBY, that is to my advantage and i will gain the daily swap. If i am short (like i am now), i will pay the swap. But what i have found is that they are not a factor in if i trade or not. Let your system dictate what you will trade, if you have to pay a little swap, so be it....

Good tradingl

Jimno
This is the only quote you will ever need to read.

With one minor exception:

My broker pays swap at 5 pm EST, therefore.....I don't look to short GBP/JPY at 4:55 pm as an example. (Although if it's a good enough set up, who cares?)

The above trade example is mainly a way to save a few pips, almost like getting a slightly better entry.

Plus, think of it this way: Look at what's going on in the JPY crosses. Now is definitely not the time to be looking for swap rates.


Best of luck

Clockwork
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