Hedging. How much can I earn

How much can I earn every day if the difference in interest rates between two currencies is 5 percent and I place a long $1000 order (at a broker who pays interest) and I place a short $1000 order (at a broker who doesn't pay or charge interest? Do I get 5 percent every day or how is it.

Interest percentage is annual, as with any interest paid or received.

Five percent would be 5% per year.

Here's a reference:

http://fxtrade.oanda.com/fxtrade/int...culation.shtml

Hedging and Futures... two things I need more education on myself

You may want to post this in the beginners section for a quick answer.

Good Luck

Maybe if you google for "Carry Trade Basket"... there's also a thread in Trading Systems, one guy that is (was) using something like that:

http://www.forexfactory.com/showthread.php?t=24673

You might want to give a glance also at the Carry Trade Basket strategy showed in dailyfx.com .

I've read several times in FF that being on the side of the negative rollover with a broker that doesn't charge swap is not allowed, because the broker loses money with this, and also the carry trade positions tend to be open for long periods, so, no spreads paid to broker; the way somebody told to overcome this situation is placing many other positions with that same broker (not carry trade system positions), so they get can revenue from your account and might not complain.

I don't any of this strategies, but hope this can help you to find somethig usefull for you.

Happy 2008!