Ok, makes sense as long as you have a broker who will allow you to do it... and your position sizes are properly correlated with each other for pip movement.
I like the idea of arbing capital gains should the positions give you positive NAV.
It would be interesting to consider the use of options in this strategy. I haven't really had the time to think it through, but a person might be able to be long a put in the high yielding currencies of gbp and usd. This would give you a hedge, WITHOUT paying interest... but obviously you pay the premium for the put. It would drastically increase your daily swap!! AND it gives potential for capital gains appreciation in the spot forex. The premiums on the options would determine if this is viable. (I'll try to sit down and figure this out over the weekend).
Good Trades,
Yukoner
I like the idea of arbing capital gains should the positions give you positive NAV.
It would be interesting to consider the use of options in this strategy. I haven't really had the time to think it through, but a person might be able to be long a put in the high yielding currencies of gbp and usd. This would give you a hedge, WITHOUT paying interest... but obviously you pay the premium for the put. It would drastically increase your daily swap!! AND it gives potential for capital gains appreciation in the spot forex. The premiums on the options would determine if this is viable. (I'll try to sit down and figure this out over the weekend).
Good Trades,
Yukoner