Hello Everyone,
Does anyone know what the policy is with respect to carryover at most dealers/merchants? I checked the broker guide in the tool section and found out that all of the brokers that I compared did not provide rollover.
It would seem very advantageous to use a “stable pair” of currencies (even some cross currency exotics) and a decent leverage “200:1” to profit from the rollovers.
Thanks in advance for the input.
[B][I]FastMoney[/I][/B]
Rollover isn’t always an obvious and overt thing. Some brokers do specifically do rollovers where your position is essentially closed and then reopen. Others just do virtual ones where you are charged or credited with the interest differential.
The only real arb play would be to do a carry trade in an account for which you will get paid and the opposite in an account where there is no roll or interest, if you can find one.
Thanks John,
I did find that Oanda does provide rollover interest on a continuous basis with tools for calculations.
[B][I]FastMoney[/I][/B]
Yeah, Oanda does continuous interest rather than the discrete EOD interest most (all?) other brokers do.