Using Swap in CFD trading.

Swap in Forex trading is an agreement consists of swapping principal and interest payments in one currency with principal and interest in another currency of a loan of equal value.

Sometimes you may choose to place a trade and carry that for a long time. Maybe to hedge against your other trades.

 To avoid paying extra fees you should choose the right pair. The best and fastest way is by looking into your broker's fees and choose a pair with a positive value for the overnight or swap fees.

The best pairs to swap belongs to a pair which one currency has a  high yielding and the other has a low yielding interest. 

Let’s use the USD and Turkish Lyra: rates in the US are currently below the interest rates in Turkey. This means that there is an opportunity to earn carry buying Turkish Lyra(TRY) with USD ie going short USDTRY.

Hedge Trading

What Is Hedging?

I call hedging a kind of insurance. Think about a bad event like a storm or flooding. We can not prevent a negative event from happening, but we can reduce the impact of the event by ensuring our asset. So, we can see the hedging every day. 

But in forex trading hedging means strategically using pairs in the market to offset the risk of any price movements in the opposite direction. In other words, forex traders hedge one position by another.

To do this you should know the correlation between different pairs.

Obviously, to open extra positions you will pay all the fees. No insurance is free, is it?

What are the negative points in hedge trading?

• In Forex, less risk means less income.
• Remember that you can not make money by hedging, It just helps you reduce your risk.

apadanaforex applies hedge trading on eToro. 

In sideways markets, we can do hedging on the same pair. Please do not do this in a very trendy market as you never know when the price will find its peaks. In the sideways market, we will make money on one and losing on the other one then we can close the profitable one at a point close to the peak and wait for the other one to either gets into profit or towards getting profitable. 

The other hedging scenario is looking for the pairs that are negatively correlating. For example, USD/CHF could be a good pair against EUR/USD. You can then close both trades when the total value is in profit. 

Main criteria for a good trading strategy

What are the main criteria for a good trading strategy?

1.       Lowers the risk by:

·         Limiting the size of each trade

·         Diversifying your portfolio

·         Using hedge trading

2.       Suits your lifestyle:

·         Trading times

·         Allocates time for: Sleeping, exercising, eating, etc…

3.       Suits your personality and emotions

·         Using the correct time frames based on the strategy

·         An anxious person cannot be a good scalper. (It eventually make him/her sick)

The most important part is how to implement your trading strategy.

·         You should follow your strategy completely

·         Review every few months. If you need to do some adjustments, do it but first test it on a practise account. (I did not do that last year. I tested my strategies straight on my real account. 

My portfolio includes 23 markets as of today which help me keep my risk low. These market are listed below.

$EURUSD  $GBPUSD $GOLD $OIL $CADJPY  $EURJPY $AUDJPY $BTC $GBPCAD $USDCAD $USDTRY $NZDUSD $USDJPY $USDCHF $EURGBP $EURAUD $CADJPY $CHFJPY $AUDCHF $AUDCAD $AUDNZD $NZDCHF $USDSGD

Please get some rest

https://etoro.tw/2G8Oduf

apadanaforex in an uptrend for the last 6 months!

The trend for apadanaforex's trades on eToro is upward.

Apadanaforex will continue the hard work to maintain profitability.

Please bare in mind the following from eToro website before considering to join:
"CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money."

Please see below our performance during the last 6 months.

Apadanaforex's March 2019 Performance on etoro

Check my March 2019's performance on eToro.


You can join me and start copying my trading activities.

Trading forex is a risky job. Please consider this before joining.

Thanks to our new trading strategy, we made more than 20% profit on etoro.