I found out whne I do carry trade, it is not like the broker is going to pay me the interest rate diff. somehow they charge me more than they pay me. in some case, they even charge me for holding a high insterest rate Currency.
Can someone please explain to me why?
Which is a good broker for carry trade?
give an example please which pair etc?
try Oanda!
OK, I did some research and figured this out. Just want to share the info with others here.
Actually, a lot of Dealers deos not give your the âBorrowing/Lendingâ rate for your carry trade at all. especially when you are trading âMINIâ lots. They have special rules and usually, you can not really do a mini carry trade in a profitable way. (in some case, no matter if you are long or short, the rollover is always negetive, at last the odds of being positive are very low.:mad:)
So be sure to check with your dealer to make clear their rollover rule.
N_aftab,Thanks for the reply, I checked Oanda, at least from their website, it looks pretty good. I will try it.
Be careful using the carry trade strategy, it can eat your lunch during these markets.
I may be wrong, But I read somwhere that some brokers wont pay you interest if your margin/leverage is too high.
You are right. That is exactly what happened to me, my margin is 100:1. I talked to my broker (I wonât say who it is), finally found this out: they charge me for most carry trades no matter what. Now I changed to another broker. who does so much a better job⌠(I wonât say which one, but I am sure you can find out here. :rolleyes:)
Thanks for the warning. I know it is not easy. but once you done it right, it should be a good thing to make some money.