how to arbitrage

interest Rate Arbitrage?

Hi Everyone,

So I realized that the Reserve Bank of Australia has interest rates of 4.5%. Is it possible for me to legally open savings accounts in Australia, and at the same time short an AUD/USD position on my fx brokerage account to cover foreign exchange fluctuations?

I figured, I’d keep it there for a year, earn 4.5%, and since the audusd swap is at -1.630 pro lot, that means I’d still make a profit.

1. Are my calculations correct?
2. Can I open an account in Australia?
3. Where can I get more info on it?

Thanks … Continue Reading