Why would a broker not like Carry Traders?
November 1st, 2009
Why would a broker not like Carry Traders?
Any broker gives swap points to carry traders. These amount is always LOWER than the actual swap rates in the interbank market. Therefore, if a broker gives you swap points, they themselves earn money as well. So why would they complain? EASY! They dont post our trades into the interbank! They take our position! HELL even if they hedge it with other traders, they charge higher negative swaps to other traders and broker earns swap points from both of us! There is absolutely NO REASON for any broker to not like Carry Traders! If you can think of one please post it here! Dont tell me brokers can get bored with our too-long-term positions…
BurgerKing, forexfactory.com