₦airaland Forum

Tried to post this info yesterday and was booted out. I hope it would be useful.

namdo:
The Swap thing (for those who take advantage):

This is a very interesting article if you want to set up your position to receive interest on all positions placed. Imagine not worrying about holding positions for a certain length of time because you're getting interest on your money every day.

Wouldn't that take the edge off of stressing over your open positions that are losing?

When opening forex transactions, the actual value date is two days forward. A deal which is done on Monday is for Wednesday’s value. A deal done on Friday is for Tuesday’s value (Saturday and Sunday are not counted), and so on. Please note : On Wednesday the amount of swap is multiplied three times (tripled) to compensate weekend holidays which swap is not charged.

How to Calculate Swap:
Traders will earn positive swap if the currency bought has greater swap rate than borrowed one.

Example 1:
USD/JPY Pair. USD Swap Rate = 5.25% , JPY Swap Rate = 0.5%
Buy USD/JPY means a trader is buying USD by borrowing JPY. Since bought currency’s swap rate (USD) is greater than borrowed currency’s swap rate (JPY), the trader will earn interest income : 5.25% - 0.5% = 4.75% When a trader Sell USD/JPY (means borrowing USD to buy JPY), the trader will be charged by interest fee : -5.25% + 0.5% = -4.75%

Example 2:
EUR/USD Pair. EUR Swap Rate = 3.75%, USD Swap Rate = 5.25%
Buy EUR/USD means a trader is buying EUR by borrowing USD. Since bought currency’s swap rate (EUR) is smaller than borrowed currency’s swap rate (USD), the trader will be charged by interest fee : 3.75% - 5.25% = -1.5% When a trader Sell EUR/USD (means borrowing EUR to buy USD), the trader will earn interest income : -3.75% + 5.25% = 1.5%

Forex Broker usually provides a list of daily swap rates for every currency pairs available. Traders could find interest fee / earning based on Buy or Sell positions they will trade. (swap is usually in $ or pips value). If the swap value is quantified in pips, traders need to convert pip to dollar by calculating pip value of corresponding currency pair.


To check the swap rate for a specific currency using the MetaTrader Platform :

1. Click on MarketWatch
2. Right click on any currency
3. Choose symbols
4. Double left click "Forex"
5. Left click a currency of choice
6. Click on properties

Now you can view what the swap is for going long or short


Happy pipping.

The Swap thing (for those who take advantage):

This is a very interesting article if you want to set up your position to receive interest on all positions placed. Imagine not worrying about holding positions for a certain length of time because you're getting interest on your money every day.

Wouldn't that take the edge off of stressing over your open positions that are losing?

When opening forex transactions, the actual value date is two days forward. A deal which is done on Monday is for Wednesday’s value. A deal done on Friday is for Tuesday’s value (Saturday and Sunday are not counted), and so on. Please note : On Wednesday the amount of swap is multiplied three times (tripled) to compensate weekend holidays which swap is not charged.

How to Calculate Swap:
Traders will earn positive swap if the currency bought has greater swap rate than borrowed one.

Example 1:
USD/JPY Pair. USD Swap Rate = 5.25% , JPY Swap Rate = 0.5%
Buy USD/JPY means a trader is buying USD by borrowing JPY. Since bought currency’s swap rate (USD) is greater than borrowed currency’s swap rate (JPY), the trader will earn interest income : 5.25% - 0.5% = 4.75% When a trader Sell USD/JPY (means borrowing USD to buy JPY), the trader will be charged by interest fee : -5.25% + 0.5% = -4.75%

Example 2:
EUR/USD Pair. EUR Swap Rate = 3.75%, USD Swap Rate = 5.25%
Buy EUR/USD means a trader is buying EUR by borrowing USD. Since bought currency’s swap rate (EUR) is smaller than borrowed currency’s swap rate (USD), the trader will be charged by interest fee : 3.75% - 5.25% = -1.5% When a trader Sell EUR/USD (means borrowing EUR to buy USD), the trader will earn interest income : -3.75% + 5.25% = 1.5%

Forex Broker usually provides a list of daily swap rates for every currency pairs available. Traders could find interest fee / earning based on Buy or Sell positions they will trade. (swap is usually in $ or pips value). If the swap value is quantified in pips, traders need to convert pip to dollar by calculating pip value of corresponding currency pair.


To check the swap rate for a specific currency using the MetaTrader Platform :

1. Click on MarketWatch
2. Right click on any currency
3. Choose symbols
4. Double left click "Forex"
5. Left click a currency of choice
6. Click on properties

Now you can view what the swap is for going long or short


Happy pipping.

i think those who still have allowance for more position should take a good look at that EJ formation advised by our naijababe, it's quite enticing and not late yet. I hear the japanese may entervene soon in a manner that would supercede what the swiss did and if that is done we could get quite some huge pips there. As master blog_icon says, 'lose responsibly'.

Quoted from my source:
The Bank of Japan name is synonymous with currency intervention and the central bank has plenty of ammunition to throw at the problem when they feel it is necessary. Given that the Yen is also trading just off record highs against the buck and some other major currencies, we do not suspect that the central bank will welcome the additional spillover flows into the Yen resulting from the Swiss depreciation. While it is true that the current deteriorative state of the global economy should funnel more money into the Yen on the liquidation of risk correlated assets, the Japanese Yen is by no means a safe haven currency given the equally uncertain Japanese economic outlook and natural benefit to the economy in having a weaker currency.


As such, we predict that any additional appreciation in the Yen will open the door for a major central bank reaction that equals or exceeds the one we have just seen from the SNB. The Euro/Yen cross is trading by multi-year lows and has dropped back below levels even seen at the onset of the crisis in 2008. We think that any additional upside pressures on the Yen will soon escalate pressures for the newly appointed Japanese officials to speak out on the unwanted currency strength and set the stage for a strong central bank campaign of aggressive currency intervention. We may not see this play out over the coming sessions, but keep a close watch for our outlook to materialize over the coming days and weeks.


happy pipping guys.

simple, as said earlier, for one to last in this business equity management with patience is key. Enter a position when you should, have the willingness/discipline to quit a position when you should (by stop loss, TP or otherwise) however if you have not blown several accounts and persisted this may not be possible seeing we are greedy always.

Personally i think that for training: if you are able to keep losing your small accounts and coming back with funding then you are becoming serious about your training and soon you would learn to apply patience/discipline in chosing when to enter, where your SL should be and where to TP or quit, or in general terms -your trading habit would improve.

Whatever technical/fundamental strategy you have, discipline, equity security and patience are therefore keys for continued success and improvement in this business.

happy week end guys, wishing you many pips next week.

rather a GIS room lol. @odia

okija priest ^^^

^^^ you should not be posting this here look elsewhere that is befitting for your promo ok, and who says betonmarkets is better, the risk is higher at the end.

what online business are you referring to? on a general account online endeavours are many but for people getting online for businesses, it is surely thriving if that's what you meant.

are we there yet?

i am looking to short au from around 1.08XX
happy pipping.

good for our yak. i hope he does well for blackburn this time around.

so what happens to the first thread? closed, going to be erased? or archived? ;D8)

welcome to season II.

@honeric01
my esmm100-10833 is saying gbp/chf may be heading south afterall.

^^^^, akay

happy 100pages and a year anniversary to d hunters and bye-standers alike.

interesting^^^add me exlora2000 on ym.

yes , mixing of everything possible, foods, genes via blood, and most important = soul tie.

Is the warning necessary? every football loving nigerian knows that this madagascar match is like a final must-win match.

grammar. placing a right trade and exiting at right timing the task here and in forex trading it is not easy otherwise we may not have need of a stop loss all the time to protect our money. I have heard some people tell me they don't use stoploss and they still make money though i don't have proof of their claims i think that indicators of all sort trendlines and channels, profitable chart/price action, etc all try to figure out where the price is heading. THEY JUST TRY TO FIGURE IT OUT, these you already know so why finking you are going to be perfect in this business. what is your average profit margin in a year of trading? you need to determine that to claim perfection. all indicators fail at one time or the other and you must protect your equity at all times.

chaiii, see pages. missing in the swamps. thumbs up to Blogicon & students.

Manage $50K na blah be dat or u wan try. like joke write me nnawag_ventures at myway dot com.

Get a happy week.

mercy johnson don fall my hand. all d free unmarried rich bobo dem don finish? she must have been pressured into this, bad news. i no support dis one.

@jamace
Open an account with finexo.com, you can trade via their web based platform. I trade with them too.

Goodluck.

Hi guys? how far? bot don unban me

@blackgucci
March 16 resistance reappearance 76.238,  and if broken to the down side by 100pips or thereabout bolt out otherwise i am in the game. Check also your $index versus the yen and see that this is likely, secondly this pair is terribly oversold recently on RSI14 (daily). Well this is a proposal and at trader's risk as usual. , i no bi guruoooo

@russy
You may get dollar index here among many other sources http://www.dailyfx.com/charts/netdaniachart/ (if you navigate to instrument USDOLLAR) for your dollar crosses decisions. I try to figure out which of the currencies are weakest against the $ at a time.

@naijababe
thanks for saying this here. i have been using dollar index to guage the strength of the dollar against the Euro in particular and it has been good.

NB, guys i think the days of the stress on dollar from the yen are getting over, time to buy USD/JPY for the long term . trust me. , 76.75 and above. I go wack de moni in december.

^^^ na scalping opportunity be dat?? the force dey highooo, lol

my 125 on GBP/JPY and 110 on EUR/JPY plus EUR/CHF objectives met, a great day indeed. happy pipping.

i dey safe now. EU fit tumble down naaaa, only managed 30pis from that lol.

NZD/USD is still in expansion   when the down trend is 'finally' established we shall know.  

tell EU to wait until i commot ma positionoooooo ,
good day guys.

i think EU will gap upwards from price tendency towards this closing period.

no wonder u neva blink since,

^^^ i hope it does not retrace to that miserly SL,