I just recently found out that there is no interest payment on positions held in the futures market. This isnt so when speaking of spot fx. So my question is .. has anyone hedged a position in the futures market with a position in the spot FX market? Example would be short contract of gbp/jpy in futures and long gbp/jpy in spot. When the you reach settlement date for the future, close both positions at the same time, lose the spread, though you made interest about .00013% interest per day on your position. Now obviously there can be difference in movement, though not much.
This is obviously not a "trading" strategy, so it wont interest many individuals, though if I understand it right it is an investement, because of the leverage. I wouldnt mind placing a fair 60% into a leveraged position to make up for all my BAD trades .
Could someone fill me in as to whether they have attempted this? Am I missing something?
Thanks,
This is obviously not a "trading" strategy, so it wont interest many individuals, though if I understand it right it is an investement, because of the leverage. I wouldnt mind placing a fair 60% into a leveraged position to make up for all my BAD trades .
Could someone fill me in as to whether they have attempted this? Am I missing something?
Thanks,
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