FX trades - medium term.

[Kennzo]

I would like to look at trading a few FX trades for several weeks on each trade, potentially up to 1-2 months.
I've been doing a little day trading on these and occasionally overnight.
What's the most cost effective way to trade FX over longer time periods?

I have a regular share dealing and SB account.

Thank you

Ken

[Caseynotes]

9 minutes ago, Kennzo said:

I would like to look at trading a few FX trades for several weeks on each trade, potentially up to 1-2 months.
I've been doing a little day trading on these and occasionally overnight.
What's the most cost effective way to trade FX over longer time periods?

I have a regular share dealing and SB account.

Thank you

Ken

Hi, the most cost effective means for holding beyond 1-2 weeks is by the Futures market (called Forwards in FX). You can find the forwards chart by the dropdown box arrow next to the asset name on the DFB chart. You pay a larger spread rolled over every 3 months but there are no overnight charges. 

[Kennzo]

Thank you @Caseynotes - can I still close this Forward at anytime?

Ken

Edited March 6, 2020 by Kennzo

[Caseynotes]

3 minutes ago, Kennzo said:

Thank you @Caseynotes - can I still close this Forward at anytime?

Ken

yes you can close anytime, also check account settings to check auto-rollover if wanted.

[dmedin]

Correct me if I'm wrong - with a forward you get nothing from interest rate differentials.  So it's hopeless if you want to benefit from the 'carry trade'.

[Caseynotes]

3 minutes ago, dmedin said:

Correct me if I'm wrong - with a forward you get nothing from interest rate differentials.  So it's hopeless if you want to benefit from the 'carry trade'.

yes because there is no overnight interest payment for a forward which is what the carry trade is attempting to capitalise on. the carry trade is more about the best place to park while waiting for a speculative opportunity.