A swap point is one of the profits obtained in Forex and refers to the interest rate differential between bilateral currencies. There are interest rates that each country has set in the currency issued by the country, but as you know, Japan is a low interest rate. Turkey (TRY / JPY), South Africa (ZAR / JPY), New Zealand (NZD / JPY), and the likes are high interest currencies. Because buying NZD / JPY will sell Japanese yen and buy NZ dollars, interest differential between currencies will be positive. If this difference in interest rates is positive, you can get the profit of the interest differential every day while holding the buying position. This is what we call a swap point.
Each swap point is individually set by each Forex company based on the interest rate determined by the country. So, by looking at the swap points specified by each Forex company in detail, you will earn profits in the Forex trade that used the swap points. By the way, the list of swap points for each currency that GEMFOREX has set is here.
On this page, GEMFOREX will compare overseas Forex companies swap points and we would like to introduce as swap point arbitrage recommendation for Forex traders to be able to properly use swap points and earn profits.
As mentioned above, Japan is a very low interest rate state. On the other hand, Turkey (TRY / JPY), South Africa (ZAR / JPY), New Zealand (NZD / JPY) are high interest currencies. Because buying NZD / JPY will sell Japanese yen and buy NZ dollars, interest differential between currencies will be positive. If this interest differential is positive, you can get the profit of the interest differential every day while holding the buying position. However, if you hold a high-interest currency in the "selling" position, a negative swap point will occur, so if you keep on holding for a long time you will pay a swap point (interest differential) every day.
Actually, this is not ridiculous…
So, what should you do so as not to become negative swap either in sell or buy?
Make positive interest rates in both.
If this can be done, although it is just theoretically, but every day except for the weekends, with small amount of money piling up, you too will start to continue a Forex account.
Is that possible?
I was expecting that simple question. But this page will proved that part.
By the way, GEMFOREX acknowledges it if it is in the same account.
With GEMFOREX' swap point
We tried to issue interest rates of
※ As of April 1, 2017
|Buy||100,000 × 0.001 × 1.40 × 0.1 = approximately + 14 yen / day|
|Sell||100,000 x 0.001 x 0.30 x 0.1 = approximately + 3 yen / day|
17 yen a day
|Buy||100,000 × 0.00001 × 1.95 × 102.00 (USD JPY rate) × 0.1 = approximately +19.89 yen / day|
|Sell||100,000 × 0.00001 × 1.54 × suppose 102.00 (USD JPY rate) × 0.1 = approximately + 15.708 yen / day|
35.598 yen per day
Of interest rate will be credited to your account every day, theoretically.
At 100,000 yen, the amount of 52.598 yen is transferred to the account daily.
If there are other companies like GEMFOREX that can make arbitrage using swap points within one company's account, and arbitrage at swap points can be done using accounts between the two companies if you could introduce that part on this page.
By all means, please use it in your Forex trading life.