Currency accepted regarded only as an object for speculation or as a means of international payments. However, modern markets allow synthesis of currencies and derivatives, synthetic products, whose behavior corresponds to the bonds. With the advent of computer technologies such opportunities have not only for large financial institutions, but also for small investors.
Inquisitive person asked in the letter ...
One day I received a letter in which the author asked the board: how to cover the price risk on the currency pair Pound / Yen? I must say, the trader, this is highly commendable: rare really inquisitive person engaged in commerce in the financial markets, strange as it sounds. The main incentive that motivates him to a deal where he was in a long position on the pound and the yen on short, were betting, or rather - their differential. Trader estimated that if the price will not move anywhere, then a year he gets a little more than nine "shapes" as a result of payments on swap of 2.5 points on a daily basis to the position of the two lots. This meant, he explained in a letter that the amount required to maintain the position, increased approximately seven times.
Inquisitive person asked in the letter ...
One day I received a letter in which the author asked the board: how to cover the price risk on the currency pair Pound / Yen? I must say, the trader, this is highly commendable: rare really inquisitive person engaged in commerce in the financial markets, strange as it sounds. The main incentive that motivates him to a deal where he was in a long position on the pound and the yen on short, were betting, or rather - their differential. Trader estimated that if the price will not move anywhere, then a year he gets a little more than nine "shapes" as a result of payments on swap of 2.5 points on a daily basis to the position of the two lots. This meant, he explained in a letter that the amount required to maintain the position, increased approximately seven times.
