Tomorrow is triple roll over day where the roll over is paid 3 times to make up for the weekend. But due to Easter it is actually going to be 5 times roll over day. This is a rare day where the roll over on certain pairs pays out more than the total spread and commission cost.
Based on an FXCM Active Trader account, here is how the idea would work:
If you buy AUDJPY tomorrow (Wednesday) at 4.59.50 EST and close at 5.00.50 EST the roll over credited to your account per 10k will be £2.70
The total transaction cost is 2.1 pips spread + 0.78 pips commission giving a total transaction cost of 2.88 pips
Pip cost is £0.76
So 2.88 x £0.76 = £2.19
Total trade transaction cost per 10K lot = £2.19
Special Roll over rate = £2.70
Roll over rate - Total transaction cost = £0.51 per 10k lot
So let's say we take a buy position with 2,000k which is 20 standard lots (1 standard lot being 100k)
Our profit is £102 simply for entering a trade and closing it out again at the same market price.
*DISCLAIMER - This is assuming no negative slippage and that during the 60 seconds your position is open, the market price remains the same. I am not recommending this trade idea. I am just pointing out a rare occasion when roll over actually pays more than transaction cost. This is not trading advice.
Based on an FXCM Active Trader account, here is how the idea would work:
If you buy AUDJPY tomorrow (Wednesday) at 4.59.50 EST and close at 5.00.50 EST the roll over credited to your account per 10k will be £2.70
The total transaction cost is 2.1 pips spread + 0.78 pips commission giving a total transaction cost of 2.88 pips
Pip cost is £0.76
So 2.88 x £0.76 = £2.19
Total trade transaction cost per 10K lot = £2.19
Special Roll over rate = £2.70
Roll over rate - Total transaction cost = £0.51 per 10k lot
So let's say we take a buy position with 2,000k which is 20 standard lots (1 standard lot being 100k)
Our profit is £102 simply for entering a trade and closing it out again at the same market price.
*DISCLAIMER - This is assuming no negative slippage and that during the 60 seconds your position is open, the market price remains the same. I am not recommending this trade idea. I am just pointing out a rare occasion when roll over actually pays more than transaction cost. This is not trading advice.