Financial Trading Product Reports

Make a profitable Forex trading strategy Revealed

Basically, the carry trade involves going long a high-yielding currency against a low yield and is a popular strategy among forex traders in the long term because they can earn interest on a daily basis. Carry traders love the yen crosses due to the interest rate very low JPY, for example, the GBP / JPY or EUR / JPY cross currency pairs. carry trades are typically held for several weeks, months or even years.

How much can you win?

Daily interest rollover credit or debit Formula

Number of lots (units) x (base currency interest rate – the price of currency interest rate) / 365 days per year x current base rate = daily debit interest currency shift / Credit

GBP / JPY Carry Trade Example

Because Britain has 5.75% rate, and Japan 0.50% rate, this cross is very attractive for traders looking for buying opportunities, because they want to earn daily interest on the trading position open. Preferred term to make decisions trade are the daily and weekly charts, because they are looking to keep the trade for a longer period of time. It really makes no sense to consider a graph 5 minutes to have a currency trading.

Carry Trade Strategy

• Identify a pair like GPB / JPY with a differential of great interest
• Apply analytical techniques and create a rules-based trading strategy of long term-term only
• Only long the currency bearing the higher interest rate, in the case of the GBP / JPY trades, long
• Keep an eye on the interest rate differential, as it may vary over time

A very simple strategy is the cross on the moving average, only go long when the fast crosses the SMA EMA slow from down (up trend), but do not take trades when fasting SMA EMA crosses the slow from above (for trend) because the carry trade strategy would focus solely in the offices of positive interest, in the case of the GBP / JPY long trade.

* Currently, when GBP / JPY, most Forex Brokers pay more than $ 25 per day per 100,000 in interest paid on a daily basis. If, for example, maintain the operation for 200 days, this could result in an incredible $ 5000 interest credited to your account not including seeds which lose or win.

GBP / JPY: 248.08
GBP
Borrow Interest: 5.6%
JPY Loan Interest: 0.8%

I hope they can benefit from this strategy. About the Author

For more free tutorials, forex tools, free system downloads, news, forex calendar, forex product reviews and articles about forex trading, please visit us at Aboutcurrency.com – Forex trading portal

Trading With Weekly Anchor Charts in Forex – Price Action