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Visar inlägg med etikett carry interest. Visa alla inlägg

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.