Does anyone know the interest calculation for a carry trade. I was short AUDUSD the other day and was charged $28.40 instead of the $7 I approximated (ouch!). Filled at .93433 Stopped at .93635 one standard lot held for 1 day. The correct formula would be greatly appreciated. Thanks
Are you saying you were stopped out @ 9363?
So, a standard lot would be $10.00 / pip.
Roll S is $0.90 on 10k, so, $9.00 on 100k.
If you were stopped out @ 20P * $10 / P, you would have lost $200.00 + Roll S.
It sounds like you may have went short on a triple roll day. Wednesday is triple roll.
Thanks FOREXunlimited for replying. Yes, I was stopped out at .93635 price or 20p on 100,000 units. Yes, I lost $200 on the trade plus the carry at 28.40 but how was that interest/roll calculated? And I’ve never heard of triple roll WEDNESDAY! WOW… (the trade did occur last Wednesday). Wait, are you saying $9 is the interest? Thanks
So, is this a live account you’re trading?
Yes! I’m waiting on a return call fr the trade desk, no one seems to know the calculation (which I find disturbing).
Seeing that you’ve “never heard of triple roll”, I’d say that gives some insight into where you are on the learning curve. 200$ in a single trade is a good amount of money to lose (in terms of the average retailer trading with $1,000.
How long have you been trading for? Not being aware of the roll, and trading a live account with that type of position size is a bit concerning…Just saying.
So are you saying $9 is the correct carry interest? If so, how is this calculated? I’ve used the -2.25%, units, margin %'g, 1/360days, 1/365days and still can’t back into the number? I relied on a system that gave me an estimate of the carry costs had I known the calculation it would have invalidated the trade to carry. Thank you for bringing to my attention “triple roll Wednesday”, which I’m still verifying with my account rep.
I’ve been developing a strategy/plan/system since 2011 and paper traded all of last year. I just went “live” May 2014. I’ve gotten 4 out of 6 trades correct since May, although not much, for a NEWBIE 67% high probable successful trades is not bad. I am not your average “retail trader” with a small account; therefore, standard lots seems prudent to me. I am FRESH and willing to learn from my mistake(s) and move on to the next trade.
A reply directly related to the calculation is appreciated. Thanks