Savant,
Please forgive me as I digress slightly in the discussion.
The idea of placing trades at multiple brokers sparked my interest.
I went over to Refco, and asked about triple interest, here is my conversation:
Please wait for a site operator to respond.
RefcoFX$3: Welcome to RefcoFX's Live Chat feature. You are now chatting with a RefcoFX representative. How can I help you?
You:: I have a question regarding interested (paid ot earned) on a position, can you help me?
RefcoFX$3: Yes I can
You:: Are there days (such as Wednesdays) that a higher interest rate is applied?
You:: I heard a rumor that triple interest can be earned on AUD/JPY by holding the pair
RefcoFX$3: Yes Wednesdays there is triple rollover
You:: is that on all pairs? or only a select few?
RefcoFX$3: All pairs.
You:: is interest earened per day, per hour per second?? how is it calculated?
RefcoFX$3: IT is everyday at 5pm
RefcoFX$3: Each currency has an overnight interest rate associated with it. 5 PM EST is the end of the international trading day so if you if you have an open position at 5 PM you have technically held your position overnight. With every currency transaction you are long one currency (you bought) and short another (you sold). If you are long the higher yielding currency you will receive interest (when trading on 2% margin) and if you are short the higher yielding currency you will pay interest. The amount of interest credited or debited to your account is based on the interest rate differential between the two currencies you are trading. Traders using less than 2% margin will always pay interest on open positions daily.
You:: so I would only need to open a position at 4:45pm and hold it till 5:15pm, and that would be considered "overnight"?
RefcoFX$3: Correct
You:: when would the interest be paid (or charged) for the position? also at 5:00pm
RefcoFX$3: yes
You:: how can I find current interest rates on the pairs you offer?
RefcoFX$3: www.dailyfx.com
RefcoFX$3: bottom left
You:: thank you for your time!
In theory, JohnFXs Idea may be feasible
Please forgive me as I digress slightly in the discussion.
The idea of placing trades at multiple brokers sparked my interest.
I went over to Refco, and asked about triple interest, here is my conversation:
Please wait for a site operator to respond.
RefcoFX$3: Welcome to RefcoFX's Live Chat feature. You are now chatting with a RefcoFX representative. How can I help you?
You:: I have a question regarding interested (paid ot earned) on a position, can you help me?
RefcoFX$3: Yes I can
You:: Are there days (such as Wednesdays) that a higher interest rate is applied?
You:: I heard a rumor that triple interest can be earned on AUD/JPY by holding the pair
RefcoFX$3: Yes Wednesdays there is triple rollover
You:: is that on all pairs? or only a select few?
RefcoFX$3: All pairs.
You:: is interest earened per day, per hour per second?? how is it calculated?
RefcoFX$3: IT is everyday at 5pm
RefcoFX$3: Each currency has an overnight interest rate associated with it. 5 PM EST is the end of the international trading day so if you if you have an open position at 5 PM you have technically held your position overnight. With every currency transaction you are long one currency (you bought) and short another (you sold). If you are long the higher yielding currency you will receive interest (when trading on 2% margin) and if you are short the higher yielding currency you will pay interest. The amount of interest credited or debited to your account is based on the interest rate differential between the two currencies you are trading. Traders using less than 2% margin will always pay interest on open positions daily.
You:: so I would only need to open a position at 4:45pm and hold it till 5:15pm, and that would be considered "overnight"?
RefcoFX$3: Correct
You:: when would the interest be paid (or charged) for the position? also at 5:00pm
RefcoFX$3: yes
You:: how can I find current interest rates on the pairs you offer?
RefcoFX$3: www.dailyfx.com
RefcoFX$3: bottom left
You:: thank you for your time!
In theory, JohnFXs Idea may be feasible