Jump to content
House Price Crash Forum

Can Individuals Take Advantage Of The Carry Trade


Recommended Posts

stoozing with credit cards is the easiest way I can think of, though you are limited by your credit rating of course.

I've read online of people building up 25-30k on 0% credit cards and putting that in a high interest account. No risk of currency fluctuations either.

Edited by bottletop
Link to post
Share on other sites

stoozing with credit cards is the easiest way I can think of, though you are limited by your credit rating of course.

I've read online of people building up 25-30k on 0% credit cards and putting that in a high interest account. No risk of currency fluctuations either.

A work colleague of mine did that and he had over £60k on credit cards at any one time. He had a whole load of spreadsheets to track them (since missing a payment would be bad) but he kept on rolling them over onto new 0% credit cards.

The funny thing was, the more he borrowed and paid off, the more others would lend him. He also told me that he would close down the CC once the 6 months (or whatever) was up but then you could re-apply after 6 months.

He actually took all the money and put it in his offset mortgage! Since he was a higher rate payer, I'm guessing he had an effective 12% post-tax return on free debt!

Link to post
Share on other sites

Sure anyone in the UK can open a spreadbetting account. or an FX trading account and take advatage of the yeild differential by borrowing yen and buying GBP. you can gear yourself up to the 9's doing this. but the more you gear the faster you loose.

BEWARE - this was an excellent thing to do 2001-2005 but is now VERY dangerous. the era of yen carry is shortly about to end once the rates go up capital will FLOOD back into Japan.

Link to post
Share on other sites
  • 3 months later...

a mate is currently doing this in the forex market from his laptop, the carry trade gives him a slight advantage...

You can borrow in Yen and invest in another currency with a currency broker who charges and gives interest over the underlying derviatives.

You will then be charged the interest for the 1bln Yen (1%) and given the interest payments for the other currency.

Link to post
Share on other sites
  • 2 months later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.