Getting paid triple swap

Discussion in 'Forex' started by Anoobis, Jul 31, 2019.

  1. Anoobis

    Anoobis

    I must be missing something. So on the usual Wednesday NY 5pm swap rollover, if I go and purchase a pair where I get the best swap payment just before rollover time and close it just after, do I get almost risk free swap payment? Or do the spreads widen, or maybe the pair goes up or down automatically, right after 5pm to make that a losing proposition? As stated, I must be missing something!
     
    wwatson1 likes this.
  2. Yea it may move agains you quickly canceling out the swap, but other than that, it's a good play
     
  3. Try to plan your trades for the whole week then u get more swap and the position profit
     
  4. Esha.J

    Esha.J

    Is it for every Wednesday NY 5pm swap rollover? Or any other day also it happens or you have checked it?
     
  5. pipeguy

    pipeguy

    Yes you will be credited with triple swaps. But you risk to receive a loss from currency speculations. Tested this trade with Hotforex but unfortunately a move in unfavourable direction next day erased all gains. Started to play with swap arbitrage then.
     
  6. Sig

    Sig

    It's just like buying a stock before it issues a dividend, the price falls the exact amount of the rollover amount or dividend when it goes ex. No free lunches there.
     
  7. pipeguy

    pipeguy

    Well it's not the same situation like with stocks. If a currency pair would surely rise or drop before triple swap you could make respective bets and earn profit, no?
     
  8. Sig

    Sig

    It's exactly the same situation. Remember, if you buy or sell just before the swap you're subject to both the swap and the currency move. The currency pair surely rises or falls the exact amount of the swap so if you buy it just before the two net out to zero. Actually a little less than zero because the bucket shops provide poorer swap rates than the wholesale rates, plus you'll lose the spread on the buy/sell transaction.