Carry Trade again?

Discussion in 'Forex' started by melanie911, Aug 3, 2009.

  1. Why would you even consider a carry trade on those pairs?! :confused:

    A simple Google for "world interest rates" provides you with plenty of exotics with sizable interest rate differences.
     
    #11     Aug 11, 2009
  2. Thank you for clarifying. What constitues a "day"? Does it depend on market close of the respective currency? i.e. I hold USD @ time of market close in NY. I am then paid any positive carry on open positions at that time?
     
    #12     Aug 11, 2009
  3. Yes, 4 or 5pm NYC close in all cases that I'm aware of.
     
    #13     Aug 11, 2009
  4. Oh and don't forget, the fancy idea of buying at 3:59pm and holding to 4:01pm doesn't work due to spreads costing more than the carry pays, even on tight pairs with the best rates. No free lunch.
     
    #14     Aug 11, 2009
  5. i don't.

    currencies anticipate interest rate decisions
     
    #15     Aug 13, 2009