EURTRY Carry Trade opportunity
Updated
There is a big opportunity to make profits using carry trading strategy.
If you open short position on EURTRY and hold it for a year, you will gain 15.9% on swaps.(usd account)
Example:
short position eurtry. volume 100k - 1 standard lot.
49.67$ will be paid to your account every time you hold your position overnight. (3 times over weekend).
In one year you will gain 18130$ on swaps.
If you use leverage 1:20. you will gain 218% on your margin (5700$).
Problems with trading EURTRY:
1) huge spread between ask and bid price.
2) market condition. there is a big challenge to find selling point now.
What is 'Carry Trade'
Carry trade is a trading strategy that involves borrowing at a low interest rate and investing in an asset that provides a higher rate of return. A carry trade is typically based on borrowing in a low-interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets – such as stocks, commodities, bonds, or real estate – that are denominated in the second currency. - Investopedia article
If you open short position on EURTRY and hold it for a year, you will gain 15.9% on swaps.(usd account)
Example:
short position eurtry. volume 100k - 1 standard lot.
49.67$ will be paid to your account every time you hold your position overnight. (3 times over weekend).
In one year you will gain 18130$ on swaps.
If you use leverage 1:20. you will gain 218% on your margin (5700$).
Problems with trading EURTRY:
1) huge spread between ask and bid price.
2) market condition. there is a big challenge to find selling point now.
What is 'Carry Trade'
Carry trade is a trading strategy that involves borrowing at a low interest rate and investing in an asset that provides a higher rate of return. A carry trade is typically based on borrowing in a low-interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets – such as stocks, commodities, bonds, or real estate – that are denominated in the second currency. - Investopedia article
Note
huge spread means that you are losing almost 1k on spread with 1 lot trade (100k).my broker provides 5931 pips spread on eurtry just now. 1:28 Kyiv time.
it's almost 1 %.
eurusd spread is only 16 pips now.
it's 0.014%
eurtry spread value is 71 time higher.
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