The Best Postive Carry Trade out there today

[mishak]

Hi KidForex

Right, in AUD/JPY 77.30 one month high gave 2.8% from Oct-6 open at 75.20.
If you bot it later as I've recommend at say 74.50 on Oct-10/13 it produced 3.75% monthly.
Not bad over the interest pips you collect daily at 4.5% annually rate.

However, AUD/USD was better. From 0.6780 on Oct-6 open it came to 0.7105 one month high yesterday and gave 4.8% for the same perion. That is over 3.5% annuallized interest pips.

You are a real position trader, Kid.

[novice]

Does anyone know what the rates are for non-deliverable forwards (NDF) on the USD/CNY

Interest rates official

USD 1%

CNY 5.31%

short USD/CNY

earn carry while USD/CNY pegged?

when unpegged/re-pegged direction most likely down

windfall profits on USD/CNY

How does one take a position on CNY and other Asian pegged currencies?

Does anyone trade non deliverable forwards? How? If so what time frame (i.e. spot, 3-months etc)?

[KidForex]

Next objective: 81 - Recent and 4 year high.

Novice:

Re: CNY - This is not a freely floating currency - You'll have a tough time finding a way or a broker to trade this in the way you want to - Only the largest institutions trade NDFs (And NDFs are very illiquid anyway with wide spreads..)


Query for NOVICE: You're supposed to be a "novice" - How do you know about trading NDFs?

[novice]

I was going to be THE WORLD'S GREATEST TRADER but I chose novice instead.

[novice]

Congrats on long AUD/JPY

I got burnt on long AUD/JPY carry trade in July 2003. At least I can take heart on the idea being right but my timing being wrong.

[novice]

I like futures of all types, spot, forwards, NDF etc. Not so much options, spread bets, CFD etc.

My general method, buy hard "currencies" sell weak "currencies".

CNY hardest fiat "currency" in the world?

[novice]

Early Xmas gift for you

There is a lot of talk down under of the RBA lifting interest rates in either Nov or Dec or both.

[novice]

NDF

I don't take physical delivery to close trades, but match them out.

So trading normal forwards (i.e. spot, a very short term forward 1 or 2 days) vs NDF is not that different. The mechanics might be different but overall it is more the same than different.

It is had to find information on NDFs. But from what I understand USD/CNY forward trades at a discount to USD/CNY spot. Thus if short USD/CNY you would make money on the rollover of contracts. Thus positive carry on short USD/CNY.

Now I just have to find a way to do it without being killed by fees and spreads.

Ideally rollover spot contracts but maybe 3-month forwards?