I made $0.07 holding this short position yesterday. So, I figure if I just multiply this position by 100 (1.5 lots) I’ll make $7.00 per day as a carry trade.
Simple, right?
Simple yes, but the swap trade only increases minimally.
Calculation Swap = [(One Point / Exchange Rate) x Trade Size] x Swap Value in Points
1 Like
Thanks Steve, I was wondering when someone was going to point out the faults.
Sure, things might look good for a while, but then price turns around, and when you’re $10k in the red $7/day doesn’t look so good anymore. Then you find out interest rates have changed, so on top of the $10k in the hole, you’re now paying $3/day for this “carry trade”.