AriaS
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As a swing trader, I always trade in the direction of positive swaps (unless the negative swap is smaller than 7 usd per lot). On the other hand, this increases the risk of price turning against me, if sudden risk aversion happens. How do you solve this? I mean, we can trade in both directions equally, but if a trade runs for days or even weeks, negative swaps can erase most of the profit, or make the loss much bigger. Some negative swaps reach 20 usd, and its x3 on Wednesday to Thursday rollover. And which pairs have the largest negative swaps? Yes, exactly the riskiest in term of risk aversion: Highest yielding against the Safe Haven. So if we want to save on swaps, we buy the highest yielding against the lowest yielding, and those pairs turn against us the most, in case of risk-off.
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