Swap arbitrage - is it possible?

[hatemypips]

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?

 

[hatemypips]

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]

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]

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.

 

[Mr.Emilio]

Hi John. We know us from forexfactory.

Did you buy this?
How does the software look?
Does this work?

 

[trader-john]

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.

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

 

[Adamson]

Does this work with regulated brokers or only with bogus aka bucket shop brokers?

 

[trader-john]

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.

 

[galeonbaster]

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:

 

[trader-john]

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:

As all positions are hedged, there is no wrong or right side old sport. Meaning....no poop.

View attachment 275529

 

[MrHoodieButBi]

As all positions are hedged, there is no wrong or right side old sport. Meaning....no poop.

Have a good day, Sir.
I wonder if the swap-arbitrage still available today? If yes, what brokers you are using?

 

[Tropacol34]

Have a good day, Sir.
I wonder if the swap-arbitrage still available today? If yes, what brokers you are using?

Hello MrHoodieButBi,

Yes I've been practicing Swap arbitrage for 1 year now. One of the best way to trade as you get paid pretty much every day via interest..

Brokers usage really depends from the available combinations at any given time. I advice to take a look at Netswapsystem site if you want to trade with this strategy, they offer very valuable tools

 

[T_D_P]

Hello, the only (effective) swap-arbitrage is known as a Carry-Trade method. It’s invented by the Japanese housewives (yes, housewives).

What is the deal-breaker remains unknown except for over reliance on the macroeconomic events. Take a look at Russia, US, and Geo-political mix to manage risk.

 

[Tropacol34]

Hello, the only (effective) swap-arbitrage is known as a Carry-Trade method. It’s invented by the Japanese housewives (yes, housewives).

What is the deal-breaker remains unknown except for over reliance on the macroeconomic events. Take a look at Russia, US, and Geo-political mix to manage risk.

Hello, Carry trading is actually not an arbitrage strategy.. With the Carry-trade method you do take advantage of Swaps but you are exposed to capital loss i.e. you can lose money if the asset traded moves in the wrong direction.

With Swap arbitrage on the other hand you can both profit from Swaps and be fully hedged at the same time so no need to look at Russia, US, and Geo-political mix to manage risk