Module I — Economy of Swap and Cross-Broker Carry
Status: outline. Lecture body not authored. Phase: 1 CARRY
What economic phenomenon is being captured — and which readings of “risk-free arbitrage” must be removed at the start.
Broker specs → Normalisation → Observable GrossCarry → Costs → Required edgeGrossCarry = swap_long(A) + swap_short(B)
GrossCarry − frictions → operational edgeUnique process — Observable Carry First
The strategy starts from an observable magnitude. Separate that observation from any causal model of rates or markups.
Contents (curriculum): swap / rollover; long and short swap; triple swap; cut-off and rollover time; broker differences; GrossCarry; markup vs explanatory model; financing vs markup vs commercial promotion vs swap-free vs holding fee; edge persistence; unilateral modification risk.
Practice: build a Broker × Symbol × Long/Short Swap matrix and detect positive cross-broker combinations without asserting profitability.
The student stops asking “which broker pays more swap?” and starts asking whether positive, persistent, cost-net, contractually exploitable cross-broker financing exists.