I heard that trading currency only for interest differentials can be highly profitable, but also risky. Does any FF members do this, and if so, comment
about it?
about it?
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Interest Cow 0 replies
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Quoting mmills4xDislikedI heard that trading currency only for interest differentials can be highly profitable, but also risky. Does any FF members do this, and if so, comment
about it?Ignored
Quoting diallistDislikedI believe this is what ElectricSavant does in the Cash & Carry system he'll be teaching in the Private Forum when it opens in January.
DialIgnored
Quoting WTBDislikedAbobtrader,
I think fundamental analysis is one of the most dificult fields in forex trading, thus any possible light anyone (in this case yourself) could cast upon the subject should be very welcome.
As far as I am concern, I found your writing very interesting.Ignored
Quoting abobtraderDislikedPS - I visited a few other forums in recent weeks but IMHO none compare to FF ... why is there no Merchandising section with FF caps, FF mugs, FF mousemats, FF T-Shirts etc ??? Loving every minute of it!Ignored
Quoting JohnFXDislikedGuys;
It looks like because of the Holiday this Monday (markets are closed Monday), today is quadruple interest instead of the usual triple interest (for the brokers who pay such interest). A good way to get the interest rates is right off the FXCM platform.... about all I use their platform for..LOL.
JohnFXIgnored
Quoting JohnFXDisliked
While I'm on the subject, I have noticed an interesting thing regarding USDJPY. Looking back over a couple of month's charts, if you go long USDJPY say around 4:30 PM (NY) every wednesday, USDJPY seems to always rise into 5PM. I would suspect it is because of longs are being put on by traders looking to take advantage of the interest. Then you could hold the position until 5:01 (if your broker has triple interst on Wed.) and earn the interest plus the upward movement in price. This looks like a high probability trade to watch for Wednesday. Take a look at your past charts, and any comments are welcome.
Thanks.
JohnFXIgnored
Quoting DrRockDislikedHardly surprising considering what the USDJPY has done over the last few months. It has been in a nice uptrend throughout this time. I think you need to be wary about making assumptions on such a short sample interval. I have just run a quick scan on this and have found that in the long term it doesn't work! I will post some back testing results for this idea shortly - looks like the USDCAD might have some potential.
SimonIgnored
Quoting mrcooldudeDislikedhi JohnFX, do you mean that you can get the actual SWAP rates from the FXCM platform? if so, how?Ignored
Quoting diallistDislikedOh, you won't be able to access the merchandising section until after you've made your 1000th post. I'm over 900 posts now, but because Merlin granted me admin status, I can see it now. Wait until you get a load of the custom Swiss Army knife made with the FF emblem emblazoned on the side in 24K gold! Nice! And, the pocket watch that chimes each time a new session opens, and plays a dirge when news is not favorable.
DialIgnored
Quoting abobtraderDislikedNoooo, the FF Swiss Army knife and pocket watch. I want them now, but I must be patient. 1000 posts brings nirvana !
Hi, dazw01842. I am going to have to read ESavant's thread in more detail but while I like the idea of a hedged basket I think the reality is not so clear cut. Correlations break down all the time and when 'carry' as a theme falls out of favour, all the high yielders could get hit together (ie their correlations would rise). Also, doesn't being long GBP/JPY and short EUR/JPY just give you a synthetic EUR/GBP position? Lastly, the short EUR/JPY position detracts carry so you have to be sure its worth the trade-off of having a basket less exposed to directional fx risk.
I'm not knocking the idea, these are just thoughts, and it is late so I may be talking baloney. Indeed, I know there are many who try to exploit the UIP theory in the FX world, including the banks, so it can work.
I will read some of ES posts, and eventually get around to writing a carry piece for my blog, which I will of course post here.Ignored