Do you have any ideas how to invest this sort of money to create an income of £1500 ($3k) a month? Buying a property and letting it out, then taking a mortgage under it and buying another house? Forex? Stocks that pay good dividend? Some simple business?

Answer
With a conservative Forex hedge position an investment of $310,000 could generate $217.04 per day in interest earnings (7 days a week). This would be an annual interest of 25.55% for a total of $79,219.67.

This is based on the current swap rates on the EUR, GBP and CHF. Changes in a central bank's interest rates could cause this to go up or down.

In such a hedged position the daily interest would be earned regardless of the price of the underlying currencies.

I'd be happy to explain hedge trading further if it is of interest to you. It is also important to understand the risks associated with participating in the Forex, and actually, in any, financial market.

Drop me an email and I will send you a study that you may find interesting. pupp52@yahoo.com

Regards,

Paul

How do i avoid a rollover during a forex transaction?

Its said that if i have an open trade that goes beyond 5pm et, its considered a rollover, and my account will be debited or credited with the difference in interest rates of the two currncies i'm trading in. What if i close my position before 5 et and then reopen it after 5, would that be considered a rollover? I just want to avoid the interest rate, without hampering my trading, whatever time it maybe

Answer
If you close the trade and reopen it, this will work, you will avoid the interest payment, but you have to pay the spread again and continue paying the spread everytime you do it. Its not worth it.

Suggestion contact various brokers and have them email you their rollovers (swaps) schedule before you open an account, the rollover interset varies widely from broker to broker.

If you BUY the AUD/USD or AUD/JPY , these two pairs pay generous swaps daily. Instead of avoiding the interest rate you get paid and put it in your pocket every day and pay the spread once. I held the AUD/USD 41 days and my swaps were awesome. Along with 375 pips in profit.

http://theforexheatmap.blogspot.com/2009/07/forex-educationa-post-5-draft.html
Also read lesson 3 and 4 several times concerning forex brokerage in my 35 part series.

Good Trading
Mark Mc Donnell
http://www.forexearlywarning.com/
Yahoo Answers Level 3 Responder