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