Forex overnight strategy
It is used not only by the common retail traders but also by the big hedge funds. The main principle of the carry trade strategies is to buy currency with a high interest rate and sell one with a low interest rate. Such setup offers profit not only from the currency pair's fluctuations but also from the interest rate difference overnight interest rate. This strategy should only be applied under the normal global economic conditions. You should never use it during the crisis. Remember that your Forex broker should be one of those that actually pay overnight interest rate difference if you want to earn from it.
How Retail Brokers use Overnight Swap Rates | DailyForex
You will not be able to earn from it if your broker is "swap-free". As you can see, the profit potential is simply outstanding.
The problem is that the uptrend ended very fast inand traders had little time to react and close their positions. The carry trade is quite risky, and you should be very careful when deciding to use it.
Use this strategy at your own risk. It is not recommended to use this strategy on the real account without testing it seasonality forecasting stock market movement direction demo first.
Frank Denneman
Do you have any suggestions or questions regarding this strategy? You can always discuss Carry Trade Strategy with the fellow Forex traders on forex overnight strategy Forex usd iqd Systems and Strategies forum.
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Works only with the growing global economy. Go Long or Short on the chosen pair, depending on the direction with the positive overnight interest rate for this pair. Choose moderate position size, so that it would be able to withstand a significant paper loss.
Do not set a stop-loss one of the few Forex trading strategies, where stop-loss is not recommended. When you feel that you earned enough or when you expect some global financial turmoil, close the position. Please, disable AdBlock extension in your browser.