Profits from Intrest with no matter of price movements

Mar 24, 2014 at 06:13
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8 Replies
Участник с Jan 28, 2014   4 комментариев
Mar 24, 2014 at 06:13
I thought about trading with two accounts:

One account is with swaps, the other without (islamic)

Then I will open a position on the account with swaps that will gain me profits by the interests.
To stress out the movement of the price i then open a hedge position on the other account without the swap.
So i won't make profits from price movement but i gain the interests every day.
The only comission i'll have to pay are the spreads on both accounts.

Is this a realistic idea? Can this work? Any mistake i haven't thought about?

Thank you
Участник с Nov 21, 2011   1718 комментариев
Mar 24, 2014 at 10:26
It works !!!

Get the the pair with high positive swap.
Get the max leverage you can get in order to avoid margin call.
Участник с Jan 16, 2014   42 комментариев
Mar 24, 2014 at 14:55
It's like a fraud right? 😀 Generally for true ECN accounts free swap accounts aren't available, and in case it's available they have strict restrictions like giving them a proof of your islamic faith, and after 10 days from openning your trade you'll pay commissions etc....Market maker can allow you to use free wap account without restriction but not for abusing, and one important thing, you really need a big capital to avoid getting stopped out from the losing account.

PS: It's this king of fraud that cause Blocking accounts and then traders start blaming their brokers,, we should be honest to expect honesty from others!
Quand on veut on peut
Участник с Jan 28, 2014   4 комментариев
Mar 24, 2014 at 14:58
Thank you :) did you try yourself?

There has to be enough Capital on the account to stand high volality, when markets move longer in one direction, i take profit from one side to the other to be balanced.
I'm going to try this in demo first to see how much capital is needed and how to react.
Would still be happy for any tipps :D
Участник с Feb 22, 2011   4862 комментариев
Mar 24, 2014 at 15:57
monarchfx posted:
Thank you :) did you try yourself?

There has to be enough Capital on the account to stand high volality, when markets move longer in one direction, i take profit from one side to the other to be balanced.
I'm going to try this in demo first to see how much capital is needed and how to react.
Would still be happy for any tipps :D

The profit would be rather small anyway. And for high swap exotic pairs you also pay high spread so it would take some time just to earn the spread back.
It might be more profitable to open account at some broker who pays interest for deposited funds.
Участник с Jan 16, 2014   42 комментариев
Mar 24, 2014 at 16:01
monarchfx posted:
Thank you :) did you try yourself?

There has to be enough Capital on the account to stand high volality, when markets move longer in one direction, i take profit from one side to the other to be balanced.
I'm going to try this in demo first to see how much capital is needed and how to react.
Would still be happy for any tipps :D

Actually I didn't try it and I'm not gonna try it, it's a waste of time!
I'll explain to you with an example:

The higest swap we can get should be on AUD/JPY, at my broker long position on aud/jpy will give you 6$ per lot, the spread for this pair is about 2.5 pips. So, if you buy one lot aud/jpy you need 5 days to recover your spread 😀 After that everyday you will earn 6$ 😄 But to keep your position with 1 lot size open for longtime you need at least 4000$ as your capital in every account,, which mean you need to invest a total amount of at least 8000$ 😁

Now tell me,, do you really expect to earn 6$ daily with a capital of 8000$ ??? It doesn't make sense 😉
Quand on veut on peut
Участник с Jan 28, 2014   4 комментариев
Mar 25, 2014 at 06:59
hmm not really haha :D
I'm going to forget about that^^
Thank you
Участник с Jan 16, 2014   42 комментариев
Mar 25, 2014 at 09:06
monarchfx posted:
hmm not really haha :D
I'm going to forget about that^^
Thank you
Before subprime crisis of 2008, carry trading was interisting even without covering your position with a free swap account, but since that crisis, it becames not interesting anymore. Now I wanna advise you to focus on learning forex bcuz the best way to make money is by trading😄
Quand on veut on peut
forex_trader_136673
Участник с Jun 28, 2013   852 комментариев
Mar 25, 2014 at 13:43
I think the highest swap pays TRY pairs. But it's risky as hell.

The Idea is compelling. But it makes no sense opening two different forex accoints only on one to earn swaps. It's much better Bank time deposi, government bonds , etc.

One thing is fore sure, there is no free lunch.
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