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Rollover questions

Discussion in 'General Forex Talk' started by Caoimhin, May 26, 2010.

  1. Caoimhin

    Caoimhin Recruit

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    I tend to be a longer term trader so the rollover is a big consideration for me.

    As of now (26 May, 1140 EDT) one dealer (my current equities broker) is showing rollover on a 100k lot of the EURAUD as Long -19.08 and Short 10.79 - that's close to a 2:1 differential (the roll for last Thursday was -48.20 / 40.03, not quite as large). I understand that money is going to stick to any dealer's fingers, but this differential seems a bit much.

    My questions are:
    Is this roll spread skew comparable to other dealers?
    Is the roll spread a factor in selecting a dealer, assuming one is a carry / long term trader?

    TIA
     
  2. Pharaoh

    Pharaoh Colonel

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    Positive swap is almost always significantly less than negative swap. A small amount of this difference might be legitimate broker expenses. The rest is pure profit for the broker.

    Sometimes, you'll find a pair that's negative both ways, just more negative in one direction.

    If you plan to frequently hold positions for extended periods, you definitely need to check swap rates when selecting a broker.
     
  3. Caoimhin

    Caoimhin Recruit

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    Thanks Pharaoh. I did a little looking around and, for the dealers that would show rollover without opening a demo acct, the rollover was in line with what I'm seeing at my broker. It doesn't look like this is much of a discriminator between dealers, but definitely a factor to consider in trades.
     

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