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Carry Trading Advisor
Carry Trading Advisor
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Description
This Metatrader indicator is an essential tool for those who want to use carry trading strategies. It’s also useful for keeping check on the interest charges (swap fees) you are paying to your broker on every trade.
The tool calculates the following:
- The net interest amounts received (or paid)
- The net interest yield
- The annual rate of return
- The return on investment (for your margin amount)
- The broker’s interest rate spread (fee)
When attached to a chart, the indicator displays the interest cash flows for both the long and short side of a trading position. In addition, the indicator lists the interest rates for all symbols in the market watch window. The broker’s average interest rate spread is also shown and this can be used as a fee comparison.
EXAMPLE 1:
Suppose you want to know the amount of carry interest received on the following trade:
Buy 0.1 x lots AUDJPY
Holding period: 30 days
Margin used: 300 USD (account currency)
Show interest in deposit currency
The indicator is attached to the chart AUDJPY and the following inputs are set:
Forex Trading – Foreign Exchange Course
Want to learn about Forex?
Foreign exchange, or forex, is the conversion of one country’s currency into another.
In a free economy, a country’s currency is valued according to the laws of supply and demand.
In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
A country’s currency value may also be set by the country’s government.
However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.
Salepage : Carry Trading Advisor
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