HI all --
I was thinking last night that it is possible to take a hedge with positive rollover now... nothing new, but might be nice to place a basket and let it accumulate.
Buying the following basket (rollover based on IBFX swops)
AUDUSD (+1.0 pips rollover) [+10 USD]
AUDJPY (+0.9 pips) [+11.65 USD]
USDJPY (-0.3 pips) [-3.89 USD]
Net: +1.6 pips / day [+17.76 USD]
{pip values calculated using http://www.goforex.net/pip-calculator.htm }
I had a couple of questions I wonder if someone could help answer.
1. If you're entering 1 lot of AUDUSD and 1 lot AUDJPY what many lots of USDJPY do you need to balance the trade (I know it wont be precisely balanced)
2. Is there a way to figure out the how much margin you might reasonably need to cover the volatility on the hedge (as you will never be able to hedge it perfectly).
Thanks!
I was thinking last night that it is possible to take a hedge with positive rollover now... nothing new, but might be nice to place a basket and let it accumulate.
Buying the following basket (rollover based on IBFX swops)
AUDUSD (+1.0 pips rollover) [+10 USD]
AUDJPY (+0.9 pips) [+11.65 USD]
USDJPY (-0.3 pips) [-3.89 USD]
Net: +1.6 pips / day [+17.76 USD]
{pip values calculated using http://www.goforex.net/pip-calculator.htm }
I had a couple of questions I wonder if someone could help answer.
1. If you're entering 1 lot of AUDUSD and 1 lot AUDJPY what many lots of USDJPY do you need to balance the trade (I know it wont be precisely balanced)
2. Is there a way to figure out the how much margin you might reasonably need to cover the volatility on the hedge (as you will never be able to hedge it perfectly).
Thanks!