Roll-over trading

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My friend and I were having a nice chat today on whether it is possible to exploit the rollovers.



From what I have seen on previous Wednesdays, at around 5pmEST, GBPJPY shoots up no matter what the trend is. Obviously people are taking advantage of this rollover.

The above screenprint is from my broker, Interbankfx. It shows that there is indeed a big difference between the interest rates of GBP and JPY, with GBP\'s alot higher than JPY\'s. This shows why people buy GBP to take advantage of the situation.

For every lot I buy there is a rollover of $16 x 3 (because it\'s Wednesday) so $48. So the plan is to buy before 5pm and close position shortly afterwards.

One thing I need to find out is the daily rollover rates, as it is not constant. I'll demo this this Wed. =)

Any comments would be appreciated.

there is 8 pip spread on GBP/JPY, you wont even cover the spread with triple interest.

Does any one know of a dealer that is 0 interest-meaning: not interest is paid or received?

Thanx a lot

modzew said:

Does any one know of a dealer that is 0 interest-meaning: not interest is paid or received?

Thanx a lot

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Marketiva implement zero-interest policy for all members,no interest charged or paid.

I've heard of some strategies that involve no carry over costs and multiple accounts. Has anybody had any experiences with this types of strategies?

modzew said:

Does any one know of a dealer that is 0 interest-meaning: not interest is paid or received?

Thanx a lot

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you can try using min and std accounts. ibfx min pays/receives a fixed 1 pip on. Assuming you have enough capital in both a mini and std account, you can long gbpjpy in the std and short gbpjpy in the mini. You'd pay the 1 pip on the mini each day and receive the current rate ibfx provide for gbjpy in the std account. You'd be hedged against any moves in the ccy aggregated and you'd receive the difference on a daily basis. It owuld take a few days to break even (clear the losses from the spread) but it's essentially free money! Of course, if you do this with major size, you'll need a lot of capital and would need to rebalance the accounts frequently and ibfx might notice an tell you to stop, but there are ways round this. I find it strange you get ppl boasting about their trading skills when all you need to do is think a bit and you can find ways of exploiting the brokers the way they love to do so with you

has anybody tried this carry over strategy on demo accounts?

PipCrawler said:

has anybody tried this carry over strategy on demo accounts?

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you can't try it on the dmeo cos the interst is diff .. i think it's the same as std .... all you need to do is try it out for yourself, or just think about why it works

sccz97 - i don't think i'm comprehendin on why you would long on a std account and go short on a mini account...it wouldn't be hedged if you did that, right? could you further explain...

PipCrawler said:

sccz97 - i don't think i'm comprehendin on why you would long on a std account and go short on a mini account...it wouldn't be hedged if you did that, right? could you further explain...

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erm .. in what way woudln't it be hedged ... of course you'd be doing 1 lot on the std and 10 lots on the mini but i thought that was obvious.