Hedging GBP/JPY (Arbitrage trading system) - page 6

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mucho69:
gbp/jpy has 200 pip or more move daily, lets say you have 10 lots, within 3 days a 500 pip move will cost you $50,000 , you wont even have enough time to make money to pay for the spread and you will already be stopped out

Thanks Mucho69,

I'm going to take your advise and use the GBP/CHF. It's much less volatile. I was also thinking I could use 1.5 lots of GBP/CHF and achieve the same profit as GBP/JPY and still be at 1/2 the volatility.

What are your thoughts?

Mikaja (Mike)

 

What brokers offer sawp free accounts in the US?

 

Hedge with other pairs

I try to hedge the GBP/JPY to avoid or to posponed the money transfer from an account to an other.

I Dont made any economic calculation.

I Find that EUR/USD as favorable swap rate and is more or less corelated to GBP/JPY

I try with 1 lot GBP/JPY and 2 lots EUR/USD.

I will made an other try with 1 lot EUR/usd

Currency correlation | Mataf.net

What do you think of that hedging

Robert

 

Anyone still doing this? Is it profitable? I see that some brokers like FXPro provide lower interest on longs than it deducts on shorts, and others like IBFX takes swap fees on both longs and shorts!

I guess this opportunity has dried up?

 

Is this still working? No replies for a long time.

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