I’m considering trading USD/JPY. What are your thoughts, and do you have any advice?
I don’t know which broker you are use but triple swap is calculate in end of Friday in most cases. Swap have affect in long term trades, depends on direction, in short term trading, you can add more commission in development mode to simulate swap.
This pair is comparatively less volatile and you can trade it for both long-term and short term goal but consider how much swap your broker charges you.
Brokers charge triple swap rates on Wednesday because forex contracts have a two-day settlement timeframe. For instance, a forex contract from Monday settles on Wednesday while one from Tuesday settles on Thursday and one from Wednesday settles on Friday. However, because the market is closed on Saturday and Sunday, a contract you open on Thursday will only be settled on Monday. This means that any position left open on Wednesday (after 5 pm EST) rolls over to Thursday and it can’t be settled until the following week hence the triple charge.
Note: Some brokers have opted to charge triple swaps on Fridays or even Thursdays instead of Wednesdays.
USDJPY is one of my favorite pairs to trade. Haha. For beginners, I would really suggest going for majors just like this pair. Do you already have a strategy in mind for trading this pair?
you couldn’t be more mistaken, Stanka - with the sole exception of GBP/JPY (and that only usually by a small margin) USD/JPY actually has the highest daily (and weekly) volatility of all the majors
this is my question, too
good choice, if you want something volatile! are we talking demo, or live, here? anyway, it’s a very widely traded pair, which means its liquidity is high and spreads fairly low
you’re not planning to hold trades open overnight, are you? (if not, “swap fees” are not relevant to you at all)
USD/JPY is the instrument/pair I currently trade and here a few reasons why.
The volatility is good which means a lot of opportunities for trades will arise which suits my scalping strategy.
The spreads are less than a lot of other popular pairs which means I will be in profit sooner. When some people have to reach 7 pips before they start to make a profit I will usually be in profit after my 3rd pip.
It takes less funds to get into a position. If you have 100 dollars you would be able to buy more USD/JPY pairs than EUR/GBP pairs. For example if an apple costs $5 and a banana costs $6 your $30 would yield you 6 apples while it would only be able to buy 5 bananas.
Just my two cents.