Hello everyone.
I've looked arount the forum a little bit but have not found any thread dedicated to NZD/JPY currency pair.
I am looking into this pair for quite some time. I am a newbie in Forex, but have a basic understanding of the market.
So my question to you, the experts, is the following:
If I was to go long NZD/JPY (I know, not a very wise choice at the moment) - but somewhere in the following months, and decide for a carry trade i.e. keep the NZD for a longer period of time.
I have done some calculating and got the following figures:
Investment - 1500EUR
Long 2 minilots NZD/JPY
Daily interest rate (at the momet 7%/365) = ~1,9 EUR
In a year the interest would be ~714 EUR, which is 48% of the initial investment.
This position would be without a stoploss order, since the 1500 EUR would mean that NZD/JPY could drop for 1100 pips, which would mean that the value could drop to (if bought at 78,00) 67,00. The lowest value for this pair ever was 64,32 and lowest this year was 67,77.
In theory if the currency is ranging from lets say 67,00 to 87,00 (max value ever, and also max 2006), this position could remain open throughout the year.
A 48% yearly income is not such a bad thing?
Please post your comments on this idea and feel free to rip it apart, it will save me money .
Oh, and I forgot - the leverage is 400:1.
Any other comments on this pair are very welcome.
Thank you all for writing.
Regards.
I've looked arount the forum a little bit but have not found any thread dedicated to NZD/JPY currency pair.
I am looking into this pair for quite some time. I am a newbie in Forex, but have a basic understanding of the market.
So my question to you, the experts, is the following:
If I was to go long NZD/JPY (I know, not a very wise choice at the moment) - but somewhere in the following months, and decide for a carry trade i.e. keep the NZD for a longer period of time.
I have done some calculating and got the following figures:
Investment - 1500EUR
Long 2 minilots NZD/JPY
Daily interest rate (at the momet 7%/365) = ~1,9 EUR
In a year the interest would be ~714 EUR, which is 48% of the initial investment.
This position would be without a stoploss order, since the 1500 EUR would mean that NZD/JPY could drop for 1100 pips, which would mean that the value could drop to (if bought at 78,00) 67,00. The lowest value for this pair ever was 64,32 and lowest this year was 67,77.
In theory if the currency is ranging from lets say 67,00 to 87,00 (max value ever, and also max 2006), this position could remain open throughout the year.
A 48% yearly income is not such a bad thing?
Please post your comments on this idea and feel free to rip it apart, it will save me money .
Oh, and I forgot - the leverage is 400:1.
Any other comments on this pair are very welcome.
Thank you all for writing.
Regards.
Greed and impatience are our greatest enemies.