Hedging GBP/JPY (Arbitrage trading system) - page 2

To add comments, please log in or register
eliseexige
209
eliseexige  

why not just take the positive interest side of things with a good trade on a long term basis?

Andrew2
111
Andrew2  
jperna21
26
jperna21  

For every 100k lot you have open, you should earn $4.93 per day. 10 lots = $49.30 per day. Not bad for having virtually no risk. You just need to be careful to continuously monitor your losing account and replenish from the winning account so you don't get a margin call. Can you tell us the names of the brokers?

eric79
308
eric79  

It's not 49$ for 1 100k lot. It's 4.9$ if i'm not wrong.

Andrew2
111
Andrew2  
eric79:
It's not 49$ for 1 100k lot. It's 4.9$ if i'm not wrong.

It's 4.9$

ANDy

jperna21
26
jperna21  

Sorry, my bad, forgot to move the decimal over one more spot. I just fixed above post. I wish I was correct!

Andrew2
111
Andrew2  
leon11
14
leon11  

interest free broker

hi all here i have an interest free broker that i use to hedge

http://www.marketiva.com/

gr. leon

Michel
476
Michel  
leon11:
hi all here i have an interest free broker that i use to hedge

http://www.marketiva.com/

gr. leon

http://www.marketiva.com/index.ncre?page=fx-overnight-interest :

Overnight Interest

Every currency and commodity has a "cost of carry" associated with holding the position for more than one day. It is called "overnight interest" or "premium". In currencies, this cost is a function of the "interest rate differential" of the two currencies that comprise the exchange rate.

For example, in USD/JPY, the interest rate differential is the difference between short-term U.S. interest rates and short-term Japanese interest rates. If, for example, U.S. interest rates are 5.0% and Japanese interest rates are 1.0%, the interest rate differential is 4.0% (5.0% - 1.0%). This means that if a trader was to sell USD/JPY, he would have to pay 4.0% of the notional amount of the contract per year to hold the position. If position quantity is 100,000, the trader would have to pay approximately $4,000 to hold the position for one year. This translates to approximately $11.00 per day for holding the USD/JPY position ($4,000 / 365).

Another thing : It's not true that when the quote moves you can transfert money from your winning accout to your loosing one : doing so you will loose the hedging...

So it's necessary to have the possibility to put more external monney on your loosing account. Also, many brokers don't allow a margin level below 100%, so, to be easy, your two accounts should have three times the used margin. In this case, the return is approx 133% annual with a leverage of 200. Not bad for a zero-risk investment !

abdul iliaaz shareef
151
abdul iliaaz shareef  
lewi:
Marketiva, FXCM and FXTrader.Net

hi, I talked to interbank customer service about opening a no swap account ,

they said that I will have to qualify for that . I asked for the qualofication through e-mail. i will post the reply. How about the brokers that you use?

thx

iliaaz

To add comments, please log in or register