måndag 7 januari 2008

The best deal you can make this year

The best deal you can make this year is hidden in two words: "Carry interest".

Carry interest is a simple concept really. What you do is lend out money to countries at a daily interest rate called "carry interest". You don't need to be a trader doing this. You don't even need to be particularly smart to set this up. But it sure is a great deal and the easiest deal you will ever make in your life.

You open up a forex account, fill it with cash and buy a currency giving the highest possible interest rate (carry interest). Then just let the taxameter start rolling. Check it from time to time (say once a month) and see the cash accumulate faster than you would ever be able to make money at your current job. Even if you where to take a second or third job, you would still be able to make more money per hour at carry interest.

If you have $10000 in your account and you accumulate say 0.1% a day then that would mean $10000 X 0.1% = $10/day X 20 working days a month = $200 in accumulated profits each month.

I have a little cash invested on carry interest at the moment myself and I accumulate $1.1 for every pips I hold. At the moment I hold 253 pips making me a daily accumulated profit of $278.3. It all adds up.

The risks? The leverage you will recieve when dealing with a discount broker. The second risk is interest changes (goverments tend to change interest in order to control the influx/outflux of capital into a country. Higher carry interest obviously attract more external investors to invest in a country. The same goes with lower carry interest that drive investors away from a country).

Why not test it yourself? You do yourself a big disservice by not checking it out. I'm not refering to any one discounting broker. That is up to you to find out. See it as your homework.

2 kommentarer:

Jan Bolmeson sa...

Hur stort måste beloppet vara för att det ska vara lönt att köra en carry-trade investering?

Matte sa...

Du måste lägga in minst $500 för att öppna ett mini account.

För att det ska bli lönsamt bör du nästan satsa på minst $5000.

Jag brukar använda 10% av mitt kontovärde per trade.

Ser man på det valutapar som betalar ut mest dollar per dag så är det GBP/JPY med sina USD$1.1. Det kostar minst $250 att köpa enbart en pip av detta valutapar.

Jag köper själv på GCItrading.com där man inte erbjuder en procentuell siffra utan en fixerade dollar ersättning per pips man köper på sig.