Carry trades- roll over

Hi All,

I am gr8ly intrigued by the high roll aver in aus/usd and nzd/usd pair. I want to know if ne one uses these pairs specifically for roll over trades.


Would love to hear members views on this type of trade, specific time frames that favour the trade ( 1 min, 10 min 1hr???). I have also experienced that roll over after public holidays and on wednesday is high ( 3 times on wed!!!).

A roll over trade for aus/USD ( buy) can be arnd $3 per day per mini lot ( depends on broker) and arnd $10 on wednesday.

Is there ne specific strategy for profiting form such trade? or are we suppose to use the normal strategies to decide if aus/usd is a good buy ......and just lap up the roll over as and when it comes our way?

Also, how much consideration do members give to roll over trade deficit while deciding a buy or sell position ( i am interested in short term trading i.e. couple of days to a week)

Thanks,
Rishi

Roll overs are what gives rise to carry trades.This is more common when the risk apetite is increased in markets. Low interest currencies are exchanged for buying high return assets and currencies with higher interest rates.
There are few methods to profit from it as a short term trader but to get full advantage of this rollover you need to be long term positional trader.
There are some weekend trading for rollover methods which if u are interetsed can use for small profits.
Regards
Pipshower

I am not an expert but will give you my findings. The forex market works the very sameway as share market works. The settlement happens on the third day and since saturday and sunday are holidays there is a lag of 2 days extra and hence on wednesday the roll over is thrice the usual days. Some brokers allows you to close the trade on saturday and sundays too they will not have this much high roll over, but the spread will be too high in most cases.