Profitable Ideas on Carry Trades

S

scalpmaster

Hi all,


If I have a long position of USD/CHF(3%) hedged with a long position in GBP/USD(0%), does that mean I can get capital return of more than 80% per year since there is an interest differential of 3% on a 100times or more leverage as long as GBP and CHF mirrors each other?

What other considerations are there when executing a carry trade?

Are there any other popular hedged carry trades?

Which Brokers do carry traders mostly used (any more than 100X leverage) that pays interest differential exactly as central bank rates?


I am using IB but apparently not many FX traders use IB...why?
Any difference between IDEAL and IDEAL PRO in IB?
 
Do you realize that as a scalpmaster, you have no right to put on carry trades without authorization of your broker ?
 
Quote from scalpmaster:

Hi all,


If I have a long position of USD/CHF(3%) hedged with a long position in GBP/USD(0%), does that mean I can get capital return of more than 80% per year since there is an interest differential of 3% on a 100times or more leverage as long as GBP and CHF mirrors each other?

What other considerations are there when executing a carry trade?

Are there any other popular hedged carry trades?

Which Brokers do carry traders mostly used (any more than 100X leverage) that pays interest differential exactly as central bank rates?


I am using IB but apparently not many FX traders use IB...why?
Any difference between IDEAL and IDEAL PRO in IB?
More...

If you have a long position in USD/CHF and a long one in GBP/USD for the same amount then you have an outright long position in GBP/CHF.
 
You should consider doing both sides of the equation! You are already half there with a solid carry trade, however I prefer JPY to CHF. Basically I just go long USDJPY 1:100 leverage. Nice swap interest $$$.

Then, with the remaining cash I go 3xmargin long overnight into YM stock index futures. You get the best of both worlds. This is how all the hedge funds are doing it, just they ask their clients 2% + 20%!!!!!
 
Hey Scalpmaster,

I have recently heard of a few different places. I just read a press release by FXCM stating that they offer positive rolls on all levels of margin. I\'m still trading on 50:1, but that\'s generally because I am conservative about leverage. I would check it out if you are looking to earn carry. I believe you can ask them for a demo account that would provide you with that.

What pairs have you recently been trading? I placed a few long NZD/JPY trades about a month ago and did quite well. I\'m currently looking for some good new trades but with the crazy moves this week I think I may have to hold off until Monday - don\'t want to be taken out over the weekend.
 
You want carry? As long as you're willing to accept the risk, go short EUR/TRY and USD/TRY. Pick up the enormous carry and enjoy - until a correction kicks the shit out of you. :(
 
Quote from ForexTrader1980:

Hey Scalpmaster,
I\'m still trading on 50:1, but that\'s generally because I am conservative about leverage.
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Wow. If 50:1 leverage is conservative, what's aggressive?
 
Quote from Lon Eagle:

If anything proves that the carry trades will tank soon then this thread is it......
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HAHA ,well said, well well said, once lemmings are in you know its time to run,especially so when there is poor knowledge on the workings and risks in the trade.... I hear quite a few young,bored and frustrated Japanese housewives are doing it as well..... :D
 
Quote from Cygnus Atratus:

HAHA ,well said, well well said, once lemmings are in you know its time to run,especially so when there is poor knowledge on the workings and risks in the trade.... I hear quite a few young,bored and frustrated Japanese housewives are doing it as well..... :D
More...

Actually speak to anyone that works in the industry and they'll tell you the the Japanese housewives are some of the most profitable traders....
 
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