Swap formula
Hi all,
My broker uses MODE_SWAPTYPE=0, accordingly I am obtaining my swap in points. As instance, the swaps for the pair AUD/JPY is:
Swap Long = +1.4234
Swap Short = -1.7759
Sincerely, I don't know what those number means. Where those number came from?
In my strategy, Swap is the ruler. And I work with percentage. Someone could kindly, show me the formula by which those number come about. My question is how I transforme those number into percentage values that I could apply for that same pair(AUD/JPY)? or at least, how my MT4 broker got those number from the original national percentage rates?
Thanks a lot,,,
Based on those figures I would assume you are operating a Mini or a Micro Account....
The swap long of +1.4234 means that if you buy the AUDJPY or you take a long position in the AUDJPY sometime before 5pm EST.... when 5pm EST comes, your broker will automatically close and reopen your existing positions (no extra spread charge will show and the trade numbers will not change)....
- when they do this they calculate the interest rate on the money (based on the central bank rates which then translate into the swap rates your broker gave you)
- that interest will give you +$1.4234 in your account per 1 full mini lot.
So again, if you take a long position of 0.5 mini lots at 3pm EST and you hold it until 6pm EST you will get 0.5 x 1.4234 = .7117 or an additional $0.71 added to your position...
Also, in the opposite case, if you shorted AUDJPY, you would pay or lose 0.5 x (1.7759) = -$.88 from your position
If you do a search for hedging software you will find Expert Advisors which are designed to trade a handfull of different curreny pairs with different swap rates with the goal of getting as much interest swap from each position while trying to maintain NO PRICE CHANGE - so the net profit loss of any of the trades would be as close to zero as possible and the swap income would be as great as possible...
-JojoEb
I have written about the swap types here : Swap Arbitrage article . It's about arbitrage, but treats also the swap types.
looking for code that will enter all pairs listed in MT4 that
are postive swap values and enter them based on that
Thats it
Anyone could help thanks
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My broker uses MODE_SWAPTYPE=0, accordingly I am obtaining my swap in points. As instance, the swaps for the pair AUD/JPY is:
Swap Long = +1.4234
Swap Short = -1.7759
Sincerely, I don't know what those number means. Where those number came from?
In my strategy, Swap is the ruler. And I work with percentage. Someone could kindly, show me the formula by which those number come about. My question is how I transforme those number into percentage values that I could apply for that same pair(AUD/JPY)? or at least, how my MT4 broker got those number from the original national percentage rates?
Thanks a lot,,,