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  • #541
  • Apr 14, 2011 9:14pm Apr 14, 2011 9:14pm
Quoting FX-Petra
Your post is a little confusing. Intrest is paid or deducted on postions at exactly NY close of 5pm est. You can buy just before 5pm, and sell @5:01 and get the credit (or debit). I have had 6 different brokers over the years and the procedure has always been the same. Never heard of what you are talking about. My intrest trade from yesterday worked out fine.

Regards,
FX-Petra, sorry, let me clarify.
I bought 20 lots of AUD on Monday. I have not yet had any accrued interest post to my account.
The broker said that settlement date is T (trade date) + 2 trading days. So my Monday purchase of AUD settled on close of business Wednesday. But I didn't get any accrued interest on Wednesday because the trade didn't settle until close of business.
Tonight (Thursday) will be the first day that I accrue interest.
When I sell my AUD, I will continue to accrue interest through T+2. So if I sell on Friday, I will accrue interest next Monday and Tuesday. If I sell next Monday, I will accrue interest Tuesday and (triple interest) Wednesday.

The reason for triple interest Wednesday is to pay you interest for the weekend that you held your position open. In other words, interest is always accrued two days in arrears. Hopefully that makes it clearer.
  • #542
  • Apr 14, 2011 9:16pm Apr 14, 2011 9:16pm
Quoting iflyjetzzz
What's 98?...
Sorry about the confusion, but Im used to IHUB short hand and very experienced traders.... .98 .95
  • #543
  • Apr 14, 2011 9:56pm Apr 14, 2011 9:56pm
Quoting iflyjetzzz
FX-Petra, sorry, let me clarify.
I bought 20 lots of AUD on Monday. I have not yet had any accrued interest post to my account.
The broker said that settlement date is T (trade date) + 2 trading days. So my Monday purchase of AUD settled on close of business Wednesday. But I didn't get any accrued interest on Wednesday because the trade didn't settle until close of business.
Tonight (Thursday) will be the first day that I accrue interest.
When I sell my AUD, I will continue to accrue interest through T+2. So if I sell on Friday, I will accrue interest...
I have never heard of such a thing. Every broker I have ever done business with pays triple intrest on Wend. at NY close, regardless of how long you have held the position. I think you are getting ripped off.

Regards,
  • #544
  • Apr 14, 2011 10:23pm Apr 14, 2011 10:23pm
still stay on side line - meaning not heavy trading that kind..
Aussie breaking closer to 1.06 on all the positive news to China Econ indicator.

JUst close another small trade for Aud - Long @ 1.0450 TP @ 1.0510. +50 pips.
Looking for another entry @ 1.0460.

A bit regret to close my Aussie entry 0.98 so early...haha...the interest return is so good..
I am not going to close my Kiwi @ 0.73.. for the interest sake!
  • #545
  • Apr 14, 2011 10:40pm Apr 14, 2011 10:40pm
Quoting Jade Gate
Traders looking for a civilised, informed, intelligent discussion re the Aussie dollar are welcome to post charts and comments here.

Serial pests and those incapable of respecting other traders will be banned from posting here. .....

Good trading all.
Nice

looking to short this pair, positition already built up
  • #546
  • Apr 14, 2011 10:48pm Apr 14, 2011 10:48pm
Quoting FX-Petra
I have never heard of such a thing. Every broker I have ever done business with pays triple intrest on Wend. at NY close, regardless of how long you have held the position. I think you are getting ripped off.

Regards,
+2 there Petra.

My broker is on GMT+1, so I see the swap at 6:00 PM (Positive or negative) each and every single day. On Wednesday I see the x3 swap. As long as they pay him, even if delayed, I guess it's not that big of a deal... just seems strange. This is the first broker I have heard of doing this before.
  • #547
  • Edited Apr 15, 2011 1:47am Apr 14, 2011 11:20pm | Edited Apr 15, 2011 1:47am
Venice, FX-Petra, this is the first time I've taken the time to watch interest accruals on positions. I'm used to T+3 for stock transactions; I had no idea that there was a settlement date for FOREX but it makes sense.
This link confirms T+2 settlement date for FOREX: http://www.easy-forex.com/evo/whatisforextrading.aspx
"A spot transaction
A spot transaction is a straightforward exchange of one currency for another. The spot rate is the current market price, also called the benchmark price. Spot transactions do not require immediate settlement, or payment "on the spot." The settlement date, or "value date," is the second business day after the "deal date" (or "trade date") on which the transaction is agreed to by the two traders. The two-day period provides time to confirm the agreement and arrange the clearing and necessary debiting and crediting of bank accounts in various international locations."


If you step back and think about it, this makes sense as to why Wednesday is triple interest day ... because it includes interest for Friday, Saturday, and Sunday.
I just checked my account (1207AM EDT) and it now shows an additional 248.03 AUD net liquidation value and $214.82 USD in accrued interest (I assume that's AUD interest accrued minus USD interest charged - the column is in base currency, USD).
I sold 500K AUD on Thursday and didn't get a fill for a limit order at a lower price as I would expect to see less accrued interest credited to my account next Tuesday.

FX-Petra, I don't think that I'm being ripped off; it's just I'm getting paid/charged interest two days in arrears. That would explain why I've been thrown off by my account balance on occasion. After looking into this further, I've found that some brokers pay interest based on trade date (which is what you guys get paid) and others get paid based on settlement date (interactivebrokers).
- This would also explain why, when I try to zero out a currency, it takes a couple of days until InteractiveBrokers liquidates any minimal balance.

Let me know if I need to clarify any of the above.
  • #548
  • Edited Apr 15, 2011 1:43am Apr 14, 2011 11:59pm | Edited Apr 15, 2011 1:43am
Ding! Light bulb just came on after reading FXCM's rollover policy. They accrue interest to FOREX accounts on the trade date, not settlement date. The reason why Wednesdays are triple interest days is that if you don't close out the position by 5PM EDT Wed, the settlement date won't happen until the following Monday.

So it sounds like almost all FOREX brokers accrue interest on trade date, InteractiveBrokers doesn't accrue interest until settlement date. That means any accrued interest is delayed by a couple of days for me.

Just curious, what kind of interest rates are everyone getting through their brokers? I'm wondering if there's a better broker to do carry trades through. I haven't found anything current on the subject.

Current InteractiveBroker rates:
Interest accrued on long AUD positions: >12000AUD to <120,000AUD = 4.255%.
120,000AUD and higher = 4.505%
Interest charged on short USD positions: <$100,000 = 1.58%
$100,000 to <$1,000,000 = 1.08%
$1,000,000 to <$3,000,000 = 0.58%
$3,000,000 and higher = 0.5%

How's that stack up with your FOREX broker's rates? Thanks in advance.

Edit: I looked at Dukascopy's rollover rates and they appear to pay a net of ~$251 vs $214.82 at InteractiveBrokers, although their commissions are higher than InteractiveBrokers.
  • #549
  • Apr 15, 2011 1:20am Apr 15, 2011 1:20am
Hi all,
you can add longs to your AUDUSD trade @ 1.0527 target is still 1.0670/80
Happy trading!
Meshach.
  • #550
  • Apr 15, 2011 4:47am Apr 15, 2011 4:47am
any idea to up or down? any chart shared? many thanks.
  • #551
  • Apr 15, 2011 8:05am Apr 15, 2011 8:05am
Quoting tkhlam
any idea to up or down? any chart shared? many thanks.
Just looking at an hourly chart, we will either have to make new highs today, or the bottom of the hourly channel will have to break down----- if we are going to get anywhere close to the Average Daily Range. I will be playing breakouts either way.... But more aggresively to the upside!

I would like to see a bottom break, then a move back above the channel line for a long entry and run for the topside. However, as that would be a very nice signal and make my Friday be a smooth and easy one, it will probably not happen!

Regards,
  • #552
  • Apr 15, 2011 8:16am Apr 15, 2011 8:16am
Quoting FX-Petra
Just looking at an hourly chart, we will either have to make new highs today, or the bottom of the hourly channel will have to break down----- if we are going to get anywhere close to the Average Daily Range. I will be playing breakouts either way.... But more aggresively to the upside!

I would like to see a bottom break, then a move back above the channel line for a long entry and run for the topside. However, as that would be a very nice signal and make my Friday be a smooth and easy one, it will probably not happen!

Regards,
Thanks. Why there is no movement after the release of US data?
  • #553
  • Apr 15, 2011 8:31am Apr 15, 2011 8:31am
Still holding....I think we will see a downward correction....(the top blue trend line is from 1994)


Attached Image (click to enlarge)
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  • #554
  • Apr 15, 2011 10:59am Apr 15, 2011 10:59am
Longs....please be careful up here.....when this flushes....its gonna be 500+ pis below....IMHO
  • #555
  • Apr 16, 2011 9:48am Apr 16, 2011 9:48am
Quoting forexcompoun
Hi all,
you can add longs to your AUDUSD trade @ 1.0527 target is still 1.0670/80
Happy trading!
Meshach.
No stop loss?
  • #556
  • Apr 17, 2011 6:19am Apr 17, 2011 6:19am
Quoting FX-Petra
I have never heard of such a thing. Every broker I have ever done business with pays triple intrest on Wend. at NY close, regardless of how long you have held the position. I think you are getting ripped off.

Regards,
Not Oanda. They make continuous interest payments second by second so if you hold positions over the weekend, you are still accruing interest (rather than having triple interest on a Wednesday). But, as you stated, all other brokers I have traded/trade with pay triple interest on Wednesdays.
Nothing worth having is easy.
  • #557
  • Apr 17, 2011 10:32am Apr 17, 2011 10:32am
Quoting fxtopedia
No stop loss?
Hi, this is a bonus trade, it is NOT mandatory that you take the trade. We've been long earlier. Your nickname looks familiar. Are you Nigerian? Meshach
  • #558
  • Apr 18, 2011 12:17am Apr 18, 2011 12:17am
How was your weekend Meshach? Are we still looking at 1.0670/80 as our TP? I think Aud had some bad financial news this weekend? What do you think?
  • #559
  • Apr 18, 2011 9:03am Apr 18, 2011 9:03am
Long 2 lots @ 0490. TP1 0540, TP2 0570. SL 0375. Good trades to all...

Regards,
  • #560
  • Apr 18, 2011 9:10am Apr 18, 2011 9:10am
Quoting FX-Petra
Long 2 lots @ 0490. TP1 0540, TP2 0570. SL 0375. Good trades to all...

Regards,
But Petra, we have head a weekly hanging man as candlestick pattern.

On nzd/jpy too.

Senior candlestick traders go short, IF the low of the hanging man is broken. (price closed below it)
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