Swap arbitrage - is it possible?

hatemypips

Established member
603 45
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

Member
92 10
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
 
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hatemypips

Established member
603 45
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
111 11
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
603 45
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.
 

trader-john

Active member
111 11
Hi John. We know us from forexfactory.

Did you buy this?
How does the software look?
Does this work?
Did you buy this?
Yes, I did.

How does the software look?
The main ea looks like this and there is a smaller slave ea.
swap_master_2.png


Does this work?
Yes. I traded a 5%/months portfolio from their forum and will switch to my own design in the next days.
swap_master_1.png
 
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trader-john

Active member
111 11
There are a lot of shady brokers around and avoid them like the plaque. If you use proper brokers your profits will be a bit smaller but at least you know that your money is still on your account when you wake up in the morning.
 
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galeonbaster

Junior member
39 1
Guess what, if you are on the wrong side it will still blow up in your face.

The story of all automated systems works like this:
:):(:cautious::mad::arrowr::poop:
 
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