Swap arbitrage - is it possible?

hatemypips

Established member
504 36
Is it possible to open two position with 0 exposure from two different broker accounts, one of which has 0 swap charge and second offers positive swap? What are pitfalls of such strategy?
 
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Nuadarne

Junior member
44 2
Hi. the only drawback of this is when one of your accounts gets margin call, and the other doesn't. this is when your balance is destroyed. normally brokers set their swap somehow that you don't find a currency pair which has (Sell_Swap + Buy_Swap > 0), this way brokers stop traders from opening a but and a sell on the same pair to earn money. but if you found two brokers and can use them to lock your position and earn positive swap, then use this opportunity. however that doesn't earn you a lot
 

hatemypips

Established member
504 36
Hi. the only drawback of this is when one of your accounts gets margin call, and the other doesn't. this is when your balance is destroyed. normally brokers set their swap somehow that you don't find a currency pair which has (Sell_Swap + Buy_Swap > 0), this way brokers stop traders from opening a but and a sell on the same pair to earn money. but if you found two brokers and can use them to lock your position and earn positive swap, then use this opportunity. however that doesn't earn you a lot
Why do you think that returns are small? If we magnify the buying power with leverage with zero currency exposure we could be credited with swaps on relatively big positions like 5-6 lots. The margin call is a problem and volatility creates risk that your position won't live for too long, i.e. you will earn less swaps. And there is also a question how brokers tolerate such traders.
 

trader-john

Active member
105 5
Why do you think that returns are small? If we magnify the buying power with leverage with zero currency exposure we could be credited with swaps on relatively big positions like 5-6 lots. The margin call is a problem and volatility creates risk that your position won't live for too long, i.e. you will earn less swaps. And there is also a question how brokers tolerate such traders.
I had the same idea but could not figure out how to do it properly. Anyway, it looks like this developer did figure it out. It is a market neutral (that's what it says on the page) swap trading system.

Here is a link to the page: https://forex21.com/swapmaster/

I would appreciate if you could share your thoughts with me.
 

hatemypips

Established member
504 36
I had the same idea but could not figure out how to do it properly. Anyway, it looks like this developer did figure it out. It is a market neutral (that's what it says on the page) swap trading system.

Here is a link to the page: https://forex21.com/swapmaster/

I would appreciate if you could share your thoughts with me.
Should work with new brokers which just started to gain reputation and attract traders. They will tolerate such kind of traders probably to avoid negative experience and consecutive bad feedback. Currently I'm trying this with Hotforex and Tickmill, they both offer zero spread account and reasonable swaps. Lets see how much I can earn.
 

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