I welcome you to this thread where traders can discuss all carry trades technical and fundamental analyzes , methods for hedging the carry trades. Discuss which brokers giving the best conditions for carry trading ( swap / rollover )
Carry trading is not dead. There are some interesting instruments to trade. Lately USDRUB has been the king of carry trading with the Russian Central bank interest rate currently 10 % and the USD with 0.5 % . The difference is 9.5% . So an leveraged trade by 5X if the instrument goes flat during the year gives 47.5% increase for a year. We do not get the full difference. Some goes to the brokers. This pair has also been trending down this year so it has been an adventure for some carry traders.
Also for many excotic pairs the spread can widening like crazy and it is often not possible to trade with an traditional stoploss order ( It can easy be taken out at daily rollover when brokers widening the spread by several 100 pips ) Also often a good carry trade can go against us for long time and then it can be good to have hedging ideas with correlated pairs that also give positive carry ( It is possible, look USDRUB that has strong carry hedged with oil that often has positive swap for shorts )
There are several good exotic forex instruments for carry trading . As examples:
USDRUB ( Short )
USDMXN ( Short )
EURZAR ( Short )
USDZAR ( Short)
EURTRY ( Short )
GBPTRY ( Short )
USDTRY ( Short )
EURPLN ( Short )
USDCNH ( Short )
And also many possibilities that give positive carry like
EURUSD ( Short)
GBPAUD ( Short )
AUDUSD ( Long )
USDNZD ( Long )
GBPJPY ( Long )
USDJPY ( Long )
USDCHF ( Long )
XTIUSD ( Oil ) (Short)
EURAUD ( Short )
EURCAD ( Short )
GBPSEK ( Long )
The direction long / short means the direction to trade with the swap. Not that it is good to do at the moment just to be clear .
If you have decent broker that is not bucket shop you should have positive rollover for all the pairs listed .
It is not a thread meant to show the single carry trade. More the trading ideas. Anyway nice to show the trade process so we can all benefit from it.
It can seems like nothing . But actually the daily swap at rollover quickly add up as an pleasant contribution to our total equity.
Central bank rates:
AUD 1.5 %
CAD 0.5 %
CHF - 0.75%
CHN 6%
EUR 0%
GBP 0.25 %
JPY - 0.1 %
MXN 4.75%
NOK 0.5 %
NZD 2%
PLN 1.5%
RUB 10%
SEK - 0.5%
TRY 7.5 %
USD 0.5%
I will try to update the rates when there is changes.
Carry trading is not dead. There are some interesting instruments to trade. Lately USDRUB has been the king of carry trading with the Russian Central bank interest rate currently 10 % and the USD with 0.5 % . The difference is 9.5% . So an leveraged trade by 5X if the instrument goes flat during the year gives 47.5% increase for a year. We do not get the full difference. Some goes to the brokers. This pair has also been trending down this year so it has been an adventure for some carry traders.
Also for many excotic pairs the spread can widening like crazy and it is often not possible to trade with an traditional stoploss order ( It can easy be taken out at daily rollover when brokers widening the spread by several 100 pips ) Also often a good carry trade can go against us for long time and then it can be good to have hedging ideas with correlated pairs that also give positive carry ( It is possible, look USDRUB that has strong carry hedged with oil that often has positive swap for shorts )
There are several good exotic forex instruments for carry trading . As examples:
USDRUB ( Short )
USDMXN ( Short )
EURZAR ( Short )
USDZAR ( Short)
EURTRY ( Short )
GBPTRY ( Short )
USDTRY ( Short )
EURPLN ( Short )
USDCNH ( Short )
And also many possibilities that give positive carry like
EURUSD ( Short)
GBPAUD ( Short )
AUDUSD ( Long )
USDNZD ( Long )
GBPJPY ( Long )
USDJPY ( Long )
USDCHF ( Long )
XTIUSD ( Oil ) (Short)
EURAUD ( Short )
EURCAD ( Short )
GBPSEK ( Long )
The direction long / short means the direction to trade with the swap. Not that it is good to do at the moment just to be clear .
If you have decent broker that is not bucket shop you should have positive rollover for all the pairs listed .
It is not a thread meant to show the single carry trade. More the trading ideas. Anyway nice to show the trade process so we can all benefit from it.
It can seems like nothing . But actually the daily swap at rollover quickly add up as an pleasant contribution to our total equity.
Central bank rates:
AUD 1.5 %
CAD 0.5 %
CHF - 0.75%
CHN 6%
EUR 0%
GBP 0.25 %
JPY - 0.1 %
MXN 4.75%
NOK 0.5 %
NZD 2%
PLN 1.5%
RUB 10%
SEK - 0.5%
TRY 7.5 %
USD 0.5%
I will try to update the rates when there is changes.
Trading in the shadow of SM