Swap in your strategy: profit centre or slow leak?

For swing and position traders, swap can be a meaningful income on the right side of a carry or a constant drag on the wrong one. Most strategies never mention it, and most statements do.

Swap in your strategy: profit centre or slow leak? — bid-ask spread diagram
The bid-ask spread on a currency pair

How do you treat swap?

  • whether you choose trade direction partly for swap
  • the pairs where swap changed your results
  • how you verify the swap numbers you're being charged
Swap in your strategy: profit centre or slow leak? — risk-reward diagram
A risk-reward ratio of 1 to 2

The carry trade guide and trading costs guide cover both sides.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…