Positive swap for gold and carry trade strategy in relation to gold
You probably already know that for transferring exchange positions to the next day, a corresponding commission called swap is charged.
Moreover, unlike other types of commissions, this indicator can be both negative and positive.
If we talk about currency pairs, the swap sign depends on the type of asset, the direction of the transaction and the interest rate of the bank issuing the currency.
When transacting with gold on the stock exchange, a swap is also charged, while everything is simpler here: for purchase transactions, a negative swap is sometimes charged, for sell transactions, a positive swap is sometimes charged.
The size of the gold swap directly depends on the brokerage company through which you trade, and a positive value is not found in every brokerage company. Positive swaps for gold on short positions can be found in broker trading platforms:
Broker Alpari www.alpari.com
Broker Amarkets www.amarkets.org
As you can see in the screenshots above, on average the size of a positive swap is 22 points, that is, if you open a sell transaction on the XAUUSD asset, then when you transfer the position to the next day, 22 points will be added to your profit.
It is easy to calculate that when opening a sell transaction of 1 lot of gold (about $200,000), the profit for each day will be 22 US dollars or 0.00011%*365= 0.04% per annum
As you can see, the numbers are not impressive, even if you use a leverage of 1:100 in your trading, the annual profit will still be at a fairly low level and amount to 4% per annum.
At the same time, short transactions in gold have an increased risk, since the precious metal usually rises in price in the long term.
Therefore, using the carry trade strategy on an asset such as XAUUSD is not particularly profitable, since you can get much larger profits by simply storing funds in your accounts without risking anything.
A positive swap for gold is nothing more than a pleasant bonus if you enter into long-term sales transactions.
Read also:
Is scalping on gold possible – https://time-forex.com/skalping/skalping-na-zolote
How to organize gold trading on the stock exchange - https://time-forex.com/interes/torg-zoloto-terminal