is there any kind a way that you could make money out of swap …
Carry Trade.
did you mean trade curry :26:
mate … I know swap means carry trade … and please next time understand the question … then answer …:27:
I just did. If you are collecting more interest than you are paying, you are making money.
Perhaps you don’t understand the nature of a carry trade.
I don’t mean to sound rude but mastergunner99 did answer the question as it was presented. Next time, ask the question you would like answered then you might get an answer to the question you wanted to ask instead of an answer to a question you asked but were not seeking an answer to.:o
whatever …
Note to self: ‘don’t bother answering any ForexMnstr questions as he is liable to snap at people trying to be helpful and then play the ‘whatever’ card when called on it.’
ok ok … lets go back … when saying carry trade … its opvious … when iam holding a pair … same day … there is no swap … carry it to get swap … ok … but thats not making money using swap … I meant in the first place how to make money as in getting more swap than you will get out of that position … so carry the trade … and the position is losing is not making money theory … thats why i posted …Whatever … any way … thanks guys
You need to look up what a carry trade is.
If you collect more in interest in one trade and pay less in another you get to keep the difference. Thus you gave generated a profit. Which satisfies your answer in how can you make money from swap.
That is the essence of the carry trade.
There literally is no easier way to describe that. Perhaps there is some disconnect in the language. I’m assuming English is not your primary language.
Ideally you’ll want to make sure the pair you at trading in the carry trade is moving in the direction you would like it to go.
Carry Trades are more ideal for long term growth strategies utilizing a large amount of dollars. Do you happen to be a hedge fund manager?
By far and large I have yet to come across a trader in this forum that is trading off weekly and monthly charts and holding trades for months at a time.
I personally can hold trades for a couple weeks and even then I’m gawked at as if I’m a long term trader around these parts.
When discussing the carry trade you are usually entering into the realm of fundamental analysts. The interest rate associated with a currency is the primary driver of that currency’s long term strength or weakness. Currencies that have higher interest rates tend to go up over the long term as currencies with low interest rates tend go down over the long term. There are certainly other factors that determine the relative strength or weakness of a currency but the most important is the interest rate. That is why when discussing the carry trade most only think of long term position trading.
Any time you pair a high interest currency with a low interest currency and hold overnight you can make money on the interest differential (correct pairing based on rates being a given, of course). The problem, however, is that short and intermediate price fluctuations can negate the gains made on the swap. This, I think, is what you are trying to overcome.
For short term trading, the only strategy I am aware of is using the swap as a filter of sorts. If you have a profitable trading method you simply trade it as you normally would but only if you would also gain from the swap. This, of course, greatly reduces the number of trades you will take but if you only trade with the swap in your favor – and have a profitable method to begin with – then you can, in the theoretical world, make more money. You have interest rates adding to your gains in winning trades and you have interest rates softening your losses in losing trades.
Personally, I ignore all that but using the swap can increase the long term profits of an already successful short term trading method if you only trade with the rates in your favor. If the method is successful to begin with then I would argue that you can make more by trading without such a filter.
Thanks alot guys … I did search about … carry trade and the vision is much clear now … and sorry for any misunderstanding the term -carry trade- in the beggining … by the way … yes engish is my third language not first not second but third …
Apology accepted.
:57: … ok but please next time … just advance your answers , i mean post more than a word … for example … carry trade , mention what is it and how it works … to avoid any misunderstanding both ways … I have seen your posts … many if not all posts are 2-3 words …
Let’s not exaggerate.
I provided you with the answer. Next time I will assume you don’t know what Google is and provide a search link for you.