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SWAP

Spotting a Bull Flag Pattern in Wave Coin (But Stay Cautious)Wave Coin is currently showing a promising bull flag pattern on the chart. This pattern typically indicates a continuation of the previous uptrend, suggesting potential for further gains. However, it's important to stay cautious as the price could also fall if the pattern fails to hold. The consolidation phase within the flag gives a chance to enter the market before the next breakout, but be mindful of key support and resistance levels. Always use stop-loss orders to protect your position and trade wisely!"
Long
by rebenga93
Educational: Unlocking passive income through swaps/rolloverIn this publication, we will go into a strategy for generating passive income within the forex market, irrespective of market direction. While traditional trading methods often rely on correctly predicting market directions, what if there was a way to earn without speculating on market movements? Surprisingly, such an avenue exists, and it involves capitalizing on daily swap/rollover fees through leveraging negative correlation between currency pairs. 🔷What are swaps? In the forex market, a swap, also known as a rollover or overnight interest, refers to the interest rate differential between two currencies that are part of a currency pair. When you trade forex, you are essentially borrowing one currency to buy another. Each currency in a pair has an associated interest rate set by the central bank of its respective country. Current interest rates. How a forex trade works. Swaps are incurred when a forex position is held overnight or over the weekend. Since forex trading operates 24 hours a day, except on weekends, trades held beyond the daily cutoff time (usually around 5 p.m. EST) are subject to swaps. When you open a forex trade, you are simultaneously buying one currency and selling another. Each currency has its own interest rate. If the interest rate on the currency you are buying is higher than the interest rate on the currency you are selling, you will earn a positive swap. Conversely, if the interest rate on the currency you are selling is higher than the interest rate on the currency you are buying, you will incur a negative swap. Swaps are calculated based on the notional value of the trade, which is the size of the position you are trading. The notional value is multiplied by the swap rate, which is the interest rate differential, and then adjusted for any applicable broker fees or commissions. The resulting amount is either added or subtracted from your trading account at the end of the trading day. It's important to note that swaps are not always interest rate differentials. In some cases, they may also include other costs such as administrative fees or adjustments related to market conditions. 🔷How to know if your trade has positive or negative swap. You can find this out before executing a trade in the platform you are using to execute the trade. One of the most popular platforms in the forex retail industry is MT4 and MT5 (MetaTrader 4/5) I will show you to to locate the rates in these platforms but note that this data is available regardless of the trading platform. If you are not sure how to find this in your platform simply reach out to your broker. 1: Open your MetaTrader 4/5 platform and open your market watchlist 2: Right click on the the pair you are interested in and go to "specifications" 3: An additional window should now open showing additional information on the pair. Scroll all the way down and you will find swap details. Now here you can see Swap Long and Swap Short indicating if you open a buy or sell position, if you will earn positive swap or negative swaps Now at this point you are probably saying "Okay fine, but even if I am earning a positive swap for holding a short position on OANDA:EURUSD if the trade goes against me I will lose a lot more than I will earn" And that is true. So now for the other part of earning passively without worrying about the trade direction. 🔷Correlation in the forex market Correlation in the forex market refers to the statistical relationship between the price movements of two or more currency pairs. It measures the degree to which the pairs move in relation to each other. Positive correlation : A positive correlation means that two currency pairs tend to move in the same direction Positive correlation : A positive correlation means that two currency pairs tend to move in the same direction Zero correlation : A correlation coefficient of zero (0) indicates no significant relationship between the currency pairs. In this case, the price movements of the pairs are independent of each other. Correlation can be measured over different time periods, such as daily, weekly, or monthly. Short-term correlations may differ from long-term correlations due to changing market conditions and events. For our purposes we care about daily and above correlation. 🔷How to check correlation of pairs Out of respect for TradingView and their house rules I will not recommend any specific websites in order to check correlation of pairs but there are a number of websites out there that will advise on the negative or positive correlation of pairs in relation to others. There are also scripts here on TradingView that will do that calculation for you. Below is a image of pairs and there current correlation. BUT DO NOTE THAT CORRELATION CHANGES OVERTIME AS MARKET CONDITIONS SHIFT AND YOU SHOULD CHECK CORRELATIONS DAILY OR WEEKLY The image above gives an idea as to how these correlation charts will look, where a higher percentage indicates strong correlation and lower indicating weak correlation. 🔷Setting up passive earning via swaps Currently, our focus lies on identifying a currency pair exhibiting a positive swap and a negative correlation with another currency pair that also possesses a positive swap. This holds particular significance in our analysis. Alternatively, we can seek a currency pair with a positive swap alongside a currency pair with a negative swap, provided that the positive swap surpasses the negative swap. Here is an example. OANDA:NZDJPY has a positive swap if we are to open a buy position. So what we need is a pair that is negatively correlated to OANDA:NZDJPY but has a positive swap on shorts or a lower negative swaps on the shorts Lets look at pairs negatively correlated with OANDA:NZDJPY We can check the correlation based on different timeframes. Remember that the more a pair is negatively correlated, the better for our strategy. For demonstration purposes we will use the daily timeframe. In this case it's OANDA:EURNZD with a 71.6% negative correlation. Note the daily timeframe for OANDA:EURCZK has a higher negative correlation of 82.7% which would be better for our strategy. ( We are not using that pair only because my broker does not offer that pairs for trading) We can also see that OANDA:EURNZD has a positive swap for shorts : Okay so the next thing we need to look at is the negative correlation historically overtime to see how long the pairs have remain negatively correlated in the past. In the depicted images, we observe that the daily timeframe predominantly exhibits a negative correlation over the course of the year, with a brief period of positive correlation occurring in March and May. Conversely, the weekly timeframe has consistently demonstrated a negative correlation since 2021. Before proceeding with our trades, I highly recommend referencing the charts of both currency pairs to visually assess their correlation on the mentioned timeframes. This will provide you with a clearer understanding of what to anticipate. Please find the illustration below showcasing the correlation between the pairs on the specified timeframes. So as you can see in the images above the correlation is not 1-1 in terms of price movements but in general the pairs move opposite to each other and this is what we want. Now what you need to do is simply execute your trades based on your preferred risk profile. The larger your position is on both pairs the more your will earn daily via swaps, you need to execute using the same size lot size on both pairs. For our example you would execute a buy on OANDA:NZDJPY and a sell on OANDA:EURNZD This approach presents a method of generating passive income without relying on predicting future price movements or attempting to outperform the markets. While there may be periods when your account balance shows a negative value, the concept behind this strategy lies in the negative correlation between the selected currency pairs. Over time, these pairs are expected to offset losses on either side, resulting in minimal overall gains or losses, assuming the negative correlation remains intact. To ensure the ongoing viability of this strategy, it is crucial to regularly monitor the correlation between the pairs on a weekly basis. When the correlation approaches zero, caution is advised. Monitoring market fundamentals, particularly interest rates, is essential as they greatly influence the correlation between markets. Through the accumulation of swap profits over time, the goal is for the total profits from swaps to outweigh the overall risk involved in maintaining these positions. It's important to note that while this approach emphasizes a more passive trading style, it still requires active monitoring and attention to market conditions to ensure the expected correlation and swap profits are maintained. Positives of this investment strategy: 🔸Passive Income: By trading swaps and holding positions over time, you can potentially earn passive income through positive swap rates. This income adds to your overall trading profits without requiring active trading or predicting price movements. 🔸Diversification: Trading swaps allows you to diversify your trading portfolio and reduce risk. By selecting currency pairs with different interest rates and correlation patterns, you can offset potential losses in one position with gains from another. 🔸Potential Long-Term Profits: Over time, as swap profits accumulate, they can contribute to your overall trading profits. This can be particularly beneficial for traders with a long-term investment horizon. 🔸Reduced Focus on Short-Term Price Movements: Trading swaps shifts the focus away from constantly monitoring short-term price fluctuations. Instead, you can concentrate on macroeconomic factors, interest rate differentials, and correlation patterns that affect the swaps and overall profitability. Negatives: 🔸Market Risk: Although trading swaps can provide passive income, it does not eliminate market risk. Currency prices can still experience significant volatility, economic events can impact interest rates and correlations, and unexpected market developments can affect swap rates and profitability. 🔸Swap Rates Fluctuations: Swap rates are subject to change based on various factors, including central bank decisions, economic data releases, and market conditions. Fluctuations in swap rates can affect your expected income and overall profitability. 🔸Potential Losses: Although the aim is to minimize losses through negative correlation, there may still be occasions when both positions experience losses simultaneously. Negative correlation does not guarantee complete protection against losses, particularly during periods of high market volatility or unexpected events. 🔸Monitoring and Administration: Trading swaps requires ongoing monitoring of correlation patterns, interest rates, and swap rates. It also involves administrative tasks, such as calculating and tracking swap income and adjusting positions as necessary. It is important to thoroughly understand the risks and benefits of trading swaps and earning over time before implementing this strategy. Consider your risk tolerance, trading goals, and the suitability of this approach within your overall trading strategy. THIS IS NOT INVESTMENT ADVISE.
Education
by ChristopherDownie
Asset Classes - Part 3 - For beginnersToday we prepared for you 3rd part of our paper on asset classes for beginners. Purpose of this paper is to concisely detail futures contracts, forwards, swaps and options. Asset Classes - Part 1 and 2 - For beginners Feel welcome to read part 1 and part 2 if you have not yet. Derivative Derivative is a type of financial asset which derives its value from an underlying asset or group of assets, or benchmark. Underlying assets for derivative contracts can be, for example, stocks, commodities, currencies, bonds, etc. Derivatives are traded on a stock market exchange or over-the-counter (OTC). They can be used as investment vehicles, speculative vehicles and even as hedge against the risk. Additionally, derivatives often allow for use of leverage. Most common derivatives are futures contracts, options, forwards and swaps. Illustration 1.01 Illustration 1.01 shows the daily graph of gold in USD. Futures contracts Futures contract is a standardized derivative that is publicly traded on a stock market exchange. It binds two parties together which are obligated to exchange an asset at a predetermined future date and price (without regard to current value). Expiration date is used to differentiate between particular futures contracts. For example, there may be a corn futures contract with expiration in April and then another corn futures contract with expiration in May. On a day of expiry, also called delivery, the exchange of an asset between the two parties is enforced. Underlying assets for futures contracts can be stocks, commodities, indexes, etc. Forwards Forward contract is a derivative contract between two parties to buy or sell an asset at a specified price on a future date. Unlike futures contracts, forward contracts are not standardized. They are customizable and traded over-the-counter rather than at a stock market exchange. Illustration 1.02 Illustration above depicts the daily graph of continuous futures for gold. It is clearly visible that the gold chart in USD and gold continuous futures chart are resemblant. Swaps Swap is another form of derivative contract that binds two parties to exchange cash flows. There are currency swaps and interest rate swaps. Currency swap is defined as the exchange of an amount in one currency for the same amount in another currency. Interest rate swaps are defined by exchange of interest rate payments. Illustration 1.03 Picture above shows daily graph of S&P500 continuous futures. Options Option is a type of financial asset that gives a buyer the right to buy or sell an underlying asset at a predetermined price and date. Options differ from futures contracts in that they do not oblige parties to exchange an underlying asset. There are European-style options and American-style options. European-style options can be exercised only on a date of expiry while American-style options can be exercised at any time before this date. Options that give a buyer the right to buy an underlying asset are called call options. Contrary to that, the put options give a buyer the right to sell the underlying asset. Options are very complex as they involve option risk metrics, so called greeks. DISCLAIMER: This content serves solely educational purposes.
CME_MINI:NQ1!Education
by Tradersweekly
2
SUSHI is inexpensive at ~$8 *Yum (SUSHI-USDT)🍣🍣🍣🍣🍣 😲 (Sushi is very cheap right now,) currently rank #108 CMC. Wait until price breaks structure to confirm uptrend. For fundamentals on one of my favorite altcoins SUSHI (SushiSwap,) see ideas linked in post. Bull targets are marked by lines of 🍣🍣 on chart. SushiSwap gas fees are a little high 😖, don't worry though, you can avoid this by using the Polygon chain on SushiSwap.🆗👍 lower TF headed for breakout. Let's see if we can breakout and retest for good entry. Although BTC still has main dominance in the market and is looking bullish, Sushi is correlational to ETH, which is looking strong as well. 💎 Let's go SUSHI.🏁 📈💲 Thank you 🛑🛑🛑This is not financial advice🛑🛑🛑 Above are approximate targets based on fibs etc. I always recommend looking at multiple charts when making a big investment! Always have a stop loss ✋🛑💲 set Any thoughts 💭💡, questions 🙋‍♀️🙋‍♂️❓, good 👍, bad👎, happy 😄 or sad 😥, in the comments always welcome. 🐶
Long
by jazerbay
13
Let them eat CAKE!Right now we could see a nice falling wedge after a bearish Crab Harmonic Pattern that after it reached the pcz, retraced to the .618 fib level from which it has been holding as support for 6 weeks now. Yes it struggled at the 200 day sma but it never dumped and created alot of support by doin so. Rn Cake is perfect for a trade because its very easy to manage risk at these levels. A close below 17.80$ could signal more downside on CAKEUSDT but if it manages to break the supply line of the potential falling wedge it could end this consolidation/accumulation at high levels and sideways movement with a big bullish engulfing candle in the next days or even hours. Stop losses are manual because we always want a candle close confirmation b4 selling. Today i learned a valuable TA Lesson i used the same chart for the last months for CAKEUSDT. I always studied the same CAKEBUSD chart which was cluttered with drawings which made me biased. i never hid all my drawing or looked at a clean chart which was a distraction from developments that happened on the Chart. From now on i will take a fresh look at stuff and also focus on the most important drawings and start hiding stuff more often while charting.
Long
by luyestefan
10x Potential From Rubic After Breaking The ResistanceRubic has an amazing use case and competitive advatange with cross chain swaps to coins like Uniswap, Pancakeswap, Sushiswap etc. Moreover Rubic is a multichain DEX aggregator. DEX (decentralized exchanges) are taking over traditional exchanges like Binance, Coinbase and Kraken since many countries ban them from operating. Decentralized exchanges are the future and evolution of trading and Rubics is a firstmover in this space. WIth its small cap Rubic is a very lucrative investment. Swaps like Pancakeswap have a market cap of about 3-4$ billion as of this time. Those swaps offer less operability and diverisity in coins, the main competitive advantage of Rubic. The community is in its development stages and I find the people in it quite litterate and understanding of the current environment in crypto. They see the potential of Rubic + there are tons of news of collaborations with AVAX, Harmony, 1inch, SOL and many more. I'd say synergies from the masses transitioning to DEX and the high popularity of swaps (no need to verify documents with exchanges) have poised Rubic with success!
RLong
by ToValhallaAndBack
1
What to do with uncommitted part of the capital in USDT or BTCHello everyone, We often experience situations when we have to hold spot positions for a long time or just hold cryptocurrency in Stable Coins. At the moment, the cryptocurrency market infrastructure has grown, and traders now have a huge choice of tools for passive income. We have tried different services, exchanges for trading accounts, and staking during the last 6 months. So we decided to share the best decisions in terms of safety and profitability. Important! Never keep your capital in one place. No one is protected from hacking or the disappearance of an "exchange. It is best to keep some part of your capital in a cold wallet and use the remaining part on several exchange platforms. Binance Swap. For BTC, in our opinion, the ideal product is the Binance Swap. (www.binance.com). You temporarily give part of your BTC to provide liquidity in the BTCWBTC pair. The average rate is 3-5%, sometimes it increases to 7% per annum. Binance also shares with you a part of the commission from deals. You can also place there your Stable Coins. For example, BUSDT/USDT, USDT/DAI, and others. All rates are different, but on average, it is from 4 to maybe 12% annually. Okex / Huobi lending On these two exchanges, you can lend your USDT for a fixed time and interest. On average, it is 7-10% per year. The other instruments that we tested were either extremely insecure or had too low a return rate.
BINANCE:BTCUSDEducation
by pennygene