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Old 01-09-2006, 22:52   #5
hermittrader01
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Re: Spot Forex Spread/Hedge

Quote:
Originally Posted by Trevman
dunno about those but how about,

BUY GBP/JPY
SELL GBP/USD
SELL USD/JPY

or maybe



if you could get a pip to equal the same then it should work right? even if im right each pip will never equal the same due to conversion rates changing.

hi trevman

thanks for the reply.

on the buy gbp/yen sell gbp/usd and sell usd/yen, i believe this is known as triangular arbitrage trade. have u managed to work out on a trade setup or entered at random? there is another thread on gbp/yen. but i guess the strategy is to long gbp/yen and short gbp/yen, to receive the swaps difference as profit with the underlying pairs being hedge. (the short gbp/yen swaps payable should be lower than the swaps receivable if not if it meaningless, most likely have to deal with 2 brokers)

as for the BUY GBP/JPY BUY EUR/GBP SELL EUR/CHF SELL CHF/JPY, abit tough for retail cause huge margin tie up for 4 pairs and i am not too sure what is the yield of the result? have you checked the correlationship of these pairs? i dun have them with me.

maybe you would like to discuss on the set up?

i do know about spread trading, but the trades i have entered in demo were all random, couple with spread set up might yield a better results, but i have done on that yet.

Regards,
HT
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