Hi,
I just found out about Carry Systems for FX thru a thread on ET forums. Anyone here trading this sort of system or have any links to sites/threads discussing such systems? The search button doesn't show any results here.
What is a Carry System?
Forex currency pairs pays carry interests when you carry a trade in the correct direction. For example a Long GBP/JPY pays around 6% p.a. in interests. For some dealer this is credited daily, some monthly.
A Carry System tries to keep its portfolio Delta neutral or hedged. The best scenario would be a total P/L of close to 0. The profit will come from the interests earned. Returns range from 15% to 50% per year depending on the leverage used.
I just found out about Carry Systems for FX thru a thread on ET forums. Anyone here trading this sort of system or have any links to sites/threads discussing such systems? The search button doesn't show any results here.
What is a Carry System?
Forex currency pairs pays carry interests when you carry a trade in the correct direction. For example a Long GBP/JPY pays around 6% p.a. in interests. For some dealer this is credited daily, some monthly.
A Carry System tries to keep its portfolio Delta neutral or hedged. The best scenario would be a total P/L of close to 0. The profit will come from the interests earned. Returns range from 15% to 50% per year depending on the leverage used.
