Buy Only One Currency to get interest Rate?

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Well, as we all know, forex is always traded in Pairs. If we buy AUD/USD, we get interest as AUD has higher interest rate than USD. IS it possilbe to buy only AUD and get interest??

 
Anok Imchen:
Well, as we all know, forex is always traded in Pairs. If we buy AUD/USD, we get interest as AUD has higher interest rate than USD. IS it possilbe to buy only AUD and get interest??

The only way I know that you can do something similar to this is to hedge correlated pairs and there is still risk attached because correlations don't always hold. An interesting basket to consider is a Jpy basket. Buy all the pairs that have the most positive swap and sell all those that have the least. At the moment you could buy audjpy and nzdjpy and sell eurjpy and either usdjpy or maybe gbpjpy and just hold it. You will be collecting a reasonable differential in swap difference and those pairs should never stray too far away from each other but you will get drawdown from time to time. I have found when I have tried this that these types of baskets tend to go into profit anyway because the higher yielding pairs are bought more than the others. If you're going to try something like this do it on demo and use fairly small positions sizes until you can get a feel for your max drawdown.

 
Hugh Briss:
The only way I know that you can do something similar to this is to hedge correlated pairs and there is still risk attached because correlations don't always hold. An interesting basket to consider is a Jpy basket. Buy all the pairs that have the most positive swap and sell all those that have the least. At the moment you could buy audjpy and nzdjpy and sell eurjpy and either usdjpy or maybe gbpjpy and just hold it. You will be collecting a reasonable differential in swap difference and those pairs should never stray too far away from each other but you will get drawdown from time to time. I have found when I have tried this that these types of baskets tend to go into profit anyway because the higher yielding pairs are bought more than the others. If you're going to try something like this do it on demo and use fairly small positions sizes until you can get a feel for your max drawdown.

Thanks a lot for the reply. I've been backtesting and reading articles. And now i've come to a conclusion that technal analysis is doomed to fail in th long run (like 20 yrs).

Anways, i know about the correlation, basket, hedging etc. But none are 100% safe.

The question is once again, forex trading is ALWAYS in PAIRS. Can i buy only JYP and get its interest rate?

 

people don't do it this way -- esp with leverage involve

if you see AUD over this year 2012

you can see below par 1:1 , at that time (first season), some people buy EURO already and some people rush in AUD early

then AUD fall and fall

now , it is well above par

therefore, interest is limited, while AUD related to mine ore exploration, china growth etc

i.e. if you got lot and lot of cash

you don't need this cash, then you can long term buy in -- when it is below par (next election?!)

but you better do it in few installment and have a plan and ready to suffer short term big loss'

forex look easy when you see zig zag while we think we could catch the zig zag butterfly movement

eur/aud, you can try it on DEMO, losing is dominant as it move really fast

I trade micro, keep bleeding when loss and unprepared, pick some penny and run fast when win, so eur/aud is risky -- you may try that

but this is related to euro, rather than usd, could be difficult

oooh , did you know some people trade kiwi dollar and think kiwi is a step behind aud/usd movement when there was a bigger gap -- nzd is even harder to play with

 

many UK universities is aging and dead beat staffing

traditionally

GBP rise when academic year starting

however

in the past, lira (italy), mark (deutsch mark), french franc go so outrangeous

euro is more steady now

actually, almost every european university got at least few english-medium graudate class these day

if they have to speak to another students, from another european countries

they only got choices of english (maybe deutsch if you are into austria one-- actually, austria university got more brand new interior inside)

most english ones, are mature , declining and aging while teens can do GCSE -- that become more easy

===

also , weekly, GBP does jump to certain level like a helicopter or submarine to certain price level

----- these things show only small amount of bankers trade GBP with almost communist-alike collaboration ---- otherwise, it won't go to certain level then stop ---

or students with internet, sky satellite, don't have to go to ENGLAND to learn old queering accent-ed english

they can't pick up the accent at that age either

i.e. I see no point for people playing GBP like an old school esp academic rise and fall (usually easter)

the easter is so short in continental european university anyway but people do play hard in partying, much better than those in HIGH TEA party in UK

did you notice most universities don't have much youtube too

the building are grey and old in UK universites, the staff are called senior citizens at home (if they don't stay as reader or turtle prof in uk ) -- the advantage is still most publishing material are still be able to found in english (I bet most other countries just translate in grad school publishing, rather than have a brand new idea -- in their own language)

theseday, people should notice the INDIAN IDIOT RELIGIOUS EXTREMIST_ALIKE students in the india independent baby bloom in many UK universities

they should notice, japanese yen is as volatile but easier the british pound in weekly trade

i.e. TRADERS and bankers should not TRADE that much in GBP

moreover, which stuff you buy , you want to make in britain (i.e. sweat shop at home of big bollywood indian home factory), so I think FTSE (financail time stock exchange) , most company accounting audit balance sheet are not that reliable, but lot of accounting graduates training are still from UK firms --- behind king and queen, don't forget the dark evil british heart dungeon mindset in london -- behind those royal story ==== actually rowling (harry potter) did speak up in havard graudation speech few years ago, about those dark magic professor she has, she said, those professor did not know she use their nickname in harry potter books, i.e. behind supressing oxford dudes, eagle edinburgh and half indian londoner

what is BEHIND the strength of fiscal policy of UK , accounting accuracy of british old old firm with no manufacturing or logistics ability, just like foreign exchange, there could be a big hoax behind those diplomatic speaking beautiful lies of the british old school officials --- should GBP as steady as CHF (swiss mountain secretive society)

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