HELP!!!! me understand this simple problem
Carry Trades / Interest / Roll over.
I am confused! and I need help, I have spent hours speaking to brokers and I am still not getting the answer. I am looking to do position trades on GBP JPY, and on this currency there is a huge diffrential between the sept futures and the spot by over 200 pips.
So currently if I want to go short, and expecting to hold the position for several weeks the sept sell price is 24000, but the spot is 24318 - so I am getting 318 pips less. However, as time goes by and we come closer to expiry than the spot and future gets closer and closer.
So in my example, I start with a loss of 318 pips. Assuming that during this period say the spot goes down by 300 pips than technically I have not made any money - Is that correct??
HELP! Or am i being silly not able to understand?
Carry Trades / Interest / Roll over.
I am confused! and I need help, I have spent hours speaking to brokers and I am still not getting the answer. I am looking to do position trades on GBP JPY, and on this currency there is a huge diffrential between the sept futures and the spot by over 200 pips.
So currently if I want to go short, and expecting to hold the position for several weeks the sept sell price is 24000, but the spot is 24318 - so I am getting 318 pips less. However, as time goes by and we come closer to expiry than the spot and future gets closer and closer.
So in my example, I start with a loss of 318 pips. Assuming that during this period say the spot goes down by 300 pips than technically I have not made any money - Is that correct??
HELP! Or am i being silly not able to understand?
