how to trade pairs long term with high swaps? | Forex Factory

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how to trade pairs long term with high swaps?

  • #1
  • First Post: Jul 20, 2016 3:38am Jul 20, 2016 3:38am
Hi

Say I want to trade a pair with high swaps eg. shorting AUDUSD - long term trade (6-12 month position). What is the best way to do this without cutting into my profits (if any).

It seems my broker charges approx. $10-15 per lot swap on A/U. Keeping a position open for a year would be approx. $3500 of interest charge. So I have to make a 350 pip profit just to Break Even at end of the year?

Does that sound correct or am I mistaken.

PS: I know about Islamic Accounts, but not everyone can open that, correct?

Cheers
  • #2
  • Jul 20, 2016 3:46am Jul 20, 2016 3:46am
Also, what is the best way of trading Forex without leverage? This ofcourse is a way of not getting charged swaps am I correct? Do brokers actually offer such services?
  • #3
  • Jul 20, 2016 9:30am Jul 20, 2016 9:30am
I don't think there is really anything you can do except find a broker that tends to go easier on the overnight swaps. Maybe also try to take partial profits along the way?

Its an easy way for them to make sneaky money out of their clients - and most of them don't exactly go out of their way to advertise the rates!

About a year ago I was looking at this and I decided that FXCM was just about the best broker for long-term trading as its swaps were about the best value I could find.
  • #4
  • Jul 20, 2016 5:41pm Jul 20, 2016 5:41pm
You can try to split your trading position. For example: if you can predict some correction or other moving against the trend you will be able to close position during this happens. Open on the start of the movement, close on the correction, open again when your movement back again. Thus you will wait during correction without swaps.
  • #5
  • Jul 21, 2016 9:01am Jul 21, 2016 9:01am
Quoting lemna
I don't think there is really anything you can do except find a broker that tends to go easier on the overnight swaps. Maybe also try to take partial profits along the way? Its an easy way for them to make sneaky money out of their clients - and most of them don't exactly go out of their way to advertise the rates! About a year ago I was looking at this and I decided that FXCM was just about the best broker for long-term trading as its swaps were about the best value I could find.
Yea seems kinda funny isn't it? I mean, what do long term SHORT traders do in such situations? Or do they go unleveraged? Even then, is there a way to trade interbank markets with say $200,000 of your own money, without going through a broker - who will charge you swaps?

hmm..
  • #6
  • Last Post: Jul 21, 2016 9:02am Jul 21, 2016 9:02am
Quoting Al.En
You can try to split your trading position. For example: if you can predict some correction or other moving against the trend you will be able to close position during this happens. Open on the start of the movement, close on the correction, open again when your movement back again. Thus you will wait during correction without swaps.
haha you've got to be really good at these "predictions" all year round ...

In any case every time you get in/out you get charged commissions (or spread charge, where no commission involved) - which works out to be pretty much the same as getting charged swaps every day...
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