Carry trade with futures
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Carry (investment) - Wikipedia
Jul 4, , If so, can you please explain some of the cons of using such a strategy. Also, of course doing it using futures will require more margin because they are not as leveraged as forex.
But are these the only reasons or troubles that one would run into? Jul 5, , 6: Aug 11, , 4: Aug 11, , 1: Aug 16, , Dear Rhody Trader, I am looking to hedge the exchange rate fluctuations.
How to trade the carry trade | Futures Magazine
I just want to collect interest on the interest rate differentials each night and not have to worry about the exchange rate moving up or down drastically.
In other words, free money. The problem is finding a broker to take the short side of that position who won't charge you the interest.
Dear Phoenix, I have looked into zero interest brokers, but the only one's I could found that didn't sound extremely sketchy only allowed zero interest for religious reasons i. But this was zero interest in name only, because at the end of each month, they had a way of settling up.
Marketiva was one that someone suggested, but people on various boards blasted these guys for being scammers. Anything with even a hint of scam, I will not hand over my money to.
Aug 16, , 6: No good if you live in the US but you can do this with a spread bet firm.
Carry trading: Not just for currencies | Chicago Booth Review
Get your interest on the spot daily and hedge it with the future which doesn't charge interest. You'll lose about 7 pips on the spread for both but gain about 1.
After a week, it's pure profit with zero risk. I do one with IG and the other with Capital Spreads so it's not obvious Thread Tools Show Printable Version.
Investing for Income: Can Currency Carry Trades Replace Evaporating Yields? | CFA Institute Enterprising Investor
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Aug 18, 8: Jul 8, 7: Feb 22, Analyzing the Carry Trade on Yen. Feb 11, Do many people carry trade? Feb 2, 6: Currently Active Users Viewing This Thread: