I started taking swap arbitrage with CFD!

Greetings

Good day everyone.
My name is Shuichi Kawamura.
Thank you for coming to my page today.

Market storm

US stocks, Japanese stocks, FX, crypto assets, the market price is all rough.

The most terrifying thing is crypto assets.
A 99% plunge is actually happening in just a few days.
There is a lot of noise that the dollar-yen exchange rate has reached 135 yen in a short period of time, but it looks cute.

Are all traders alive?
I also had a lot of pain in my portfolio.

To be honest, I'm pretty disappointed.
However, this is the market price.
As long as it doesn't become irreversible, there is always the next chance.

Let's look back on what we were doing at the time of this crash, reflect on our mistakes, and make use of them in the future.

Swap arbitrage

The theme this time is "CFD swap arbitrage".

Many of you may be familiar with swap arbitrage.
If you are new to hearing, please search.
Since it is a well-known investment method, many sites are disseminating information.

The site I recommend is here.
This is a study site, so please take a look.

お気楽ＦＸ　相場生活入門編

I've known this investment method for quite some time.

However, the method of earning money is boring, so I have never done it in earnest.

However, since it was hurt by the rough market this time, I thought it would be a good idea to try an investment method such as swap arbitrage, so I decided to start.

Swap arbitrage is usually done with FX.
However, this time I decided to go with CFD.
The reason is that it seems that you can aim for a bigger profit than FX arbitrage.

Below are the positions I actually took yesterday.

Swap arbitrage with crude oil CFD

Brand

The brand is crude oil CFD.

Handling company

There are several companies that handle crude oil CFDs, but the ones that are suitable for swap arbitrage are

Rakuten Securities CFD account → This is a required account.

CFD account of GMO Click Securities or CFD account of DMM Securities

We will use these securities companies.

Device

The mechanism is

Buy USOIL (crude oil) from Rakuten Securities CFD account.

Sell WTI crude oil in GMO Click Securities CFD accounts or DMM Securities CFD accounts.

Of course, the number of buys and sells is the same.

That's all you have to do.
All you have to do is earn daily swap points.

important point

The precautions are basically the same as swap arbitrage in FX.

Either position will always be negative, so be careful not to lose the negative position.

In particular, crude oil prices are quite volatile, so margin should be allowed.

How much room you need depends on the market conditions at that time, so I can't say it unconditionally, but this time I set it to 3 times as a guide.

Another thing to note is the dollar-yen exchange rate.

Rakuten Securities CFD Crude Oil, GMO Click Securities CFD Crude Oil, and DMM Securities CFD Crude Oil are denominated in dollars. Depending on the fluctuation of the dollar yen, even if the swap points received are accumulated, there is a possibility that a loss will occur if converted to yen.

I will explain this point again next time.

My position

I will show you the position I set up.

Wednesday, June 15, 2022
Buy one crude oil for $ 119.26 from Rakuten Securities CFD account.
Sell one crude oil for 116.06 in GMO Click Securities CFD account.

Rakuten Securities currently receives $ 0.78 a day in crude oil buying positions.
With GMO Click Securities, there are no swaps on crude oil.
(Instead, price adjustments are made once a month)

Rakuten Securities and GMO Click Securities have a price difference even for the same brand. For normal arbitrage, sell the one with the higher price (Rakuten Securities CFD crude oil) and buy the one with the lower price (GMO Click Securities CFD crude oil).

However, since this mechanism is aimed at swaps, we buy Rakuten Securities CFD crude oil that can receive swaps and sell GMO Securities CFD crude oil.

The high-priced Rakuten Securities CFD crude oil will be squeezed into the low-priced GMO Click Securities CFD crude oil, but we have set up this position in anticipation that the receipt of swap points will exceed the loss of the shave.

Specifically, the current sag between the two is $3.2 per barrel.
One lot is 10 barrels, so $3.2 x 10 = $32
If you continue to receive $0.78 per day, $32 ÷ 0.78 = 41 days

Even if Rakuten Securities CFD Crude Oil is sayagged to GMO CLICK Securities CFD Crude Oil, the loss will exceed the loss of the sayagged amount in 41 days.

Actually, there is no guarantee that it will go as calculated due to spreads, slippage, etc., and it is unknown whether swaps will continue to receive $ 0.78 in the first place.

However, even if it doesn't go according to the calculation, it is unlikely that it will cause a big loss, so I will try to maintain this position for a while.

I was able to receive the swap for today (received on June 16, 2022) for 0.78 x $ 134.2 = 104 yen.

For the time being, the first day was as planned.

What about this position?
We will continue to report on an irregular basis.

Thank you for reading to the end.

P.S.

Today, too, I used an illustration by Kojorin (Tetsuya Kojo).

Thank you Kojorin for your wonderful illustrations.
Please continue to create fun illustrations.