Forex Trades with Positive Swap Rates – Position Trading


What are swap rates?

Swap rates are the fixed rate that a trader/investor (buyer) receives for holding certain market assets. In the Forex market, swap rates are determined by central bank rates minus broker fees.

How can you make money from swap rates?

If a trader buys/invests in a currency with a higher interest rate than the currency being sold, this can result in a positive swap rate for the trader. For example, a trader buying US Dollars with the current interest rate of 2.25% and selling Euros at the current rate of 0.00%, may receive a positive swap rate for holding this position longer than 24 hours.

Sell EURUSD
Every 24 market hours, positive interest is added to the position

Negative swap rates also exist within the Forex market. Buying the EURUSD may result in paying interest/fees every 24 hours (negative swap), whereas selling the same pair may result in interest being paid to the trader (positive swap).

What pairs does TriumphFX offer positive swap rates on?

Long

AUDCHF
AUDJPY
CADCHF
CADJPY
GBPCHF
GBPJPY
NZDCHF
NZDJPY
USDCAD
USDCHF
USDCZK
USDHUF
USDJPY
USDNOK
USDPLN
USDSEK

Short

EURAUD
EURCAD
EURGBP
EURNOK
EURNZD
EURPLN
EURTRY
EURUSD
GBPAUD
GBPCAD
GBPNZD
USDHKD
USDMXN
USDTRY
USDZAR

The above list is correct as per 25th February 2019. Interest rate and broker fee changes may impact future swap rates.

 

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Trade Ideas

Below is a list of trading opportunities that make the most of positive swap rates. Meaning that a profitable trade will not only receive the difference between entry and exit price but will also receive interest every 24 market hours while the position is open.

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AUDCHF – Weekly Chart

 

The AUDCHF is ranging between 0.6735 and 0.7740. The moving averages confirm the current market indecision – they are tight and are moving sideways. Buying opportunities may exist around the range support area and around the rising diagonal support in preparation for a bullish break-out above the current range. A break-out move could be rejected or reverse around the horizontal levels at 0.8720, 0.9460 and 0.9890.

 

CADCHF – Weekly Chart

 

Similar to AUDCHF, the CADCHF is ranging and could be building for a bullish break-out. Price is ranging between 0.7130 and 0.7880. The moving averages are tight and moving sideways – confirming the indecision. Long opportunities could exist around the range support area and if price tests the all-time lows around 0.6870. A bullish move may find resistance around 0.8650 and 0.9460.

 

GBPJPY – Monthly Chart

 

Price has been bearish but is starting to find support. Recent price action suggests that selling momentum is weakening and that the GBPJPY could now be ready for some upside. Opportunities to go long may exist around the diagonal support area and around the horizontal support levels at 127.75 and 119.15. A bullish move could stall or reverse around the moving averages and around the horizontal resistance at 193.55.

 

USDCAD – Daily Chart

 

Price is up-trending within a bullish channel. The moving averages are bullish and steady, signalling that the uptrend may continue. Buying opportunities could exist around the channel support area and around the horizontal levels at 1.3090 and 1.2800. An attempt to swing higher may be rejected or reverse around the moving averages, around the channel resistance area and around the horizontal levels at 1.3175, 1.3355 and 1.3640.

 

EURGBP – Monthly Chart

 

The EURGBP is nearing all-time highs and is finding resistance. The bullish moving averages are starting to tighten, suggesting that upside momentum is weakening. Selling opportunities may exist around the horizontal resistance levels at 0.9040, 0.9200 and 0.9560. A bearish move could find support around the moving averages and around the horizontal levels at 0.8180, 0.7830, 0.7025 and 0.6600.

 

USDZAR – Daily Chart

 

Price is down-trending within a bearish channel. The moving averages are bearish and steady, signalling that the downtrend may continue. Shorting opportunities could exist around the dynamic resistance of the moving averages, around the channel resistance area and around the horizontal levels at 14.1100, 14.6100, 14.8500 and 15.4000. A bearish move may find support around the channel support area and around the horizontal levels at 13.6600, 13.2450 and 13.1000.