Recent content by Dom

Ok, so it's really not about hedging for you anymore. If you're worried about the U.S. and pretty much the state of the world to such an enormous extent, there are few alternatives. The USD is one of the most stable currencies in the world. It is the international trade and reserve currency...

Sorry, I wouldn't know. If I knew what the future holds in place for us, I would be the richest man alive and not Jeff Bezos. Not that I'm complaining, just saying ;) To be absolutely frank, I consider every person pretending to know the answer to a question like this a charlatan. Why are you...

If you want to reliably hedge, you need to short the USD against your local currency via an instrument available to you, such as an option, CFD, future or forward. Trading another asset as a "hedge" against USD weakness isn't really a hedge, it's diversification.

I'm beginning to get where you're coming from, Sig, but I need to strongly disagree with your observation that the exchange rate moves according to the IR differential. Your posts make it sound as if a +x% carry would result in a -x% CCY move, although I'm not 100% sure that's really what you're...

I did not say *not* to trade forwards. ;) But thanks for the addition anyways. However, if you look at the retail space where traders might not have good access to these instruments, you can trade CFDs and still earn carry. Not sure about the US to be honest, but these are easily available in...

Feel like some things get mixed up in this thread. Carry trade has NOTHING to do with arbitrage. CIP violations might present arb opportunities. Carry trade is all about UIP. Plus, conspiracy theories don't get you far in trading. FX rates are not set by banks. It is the most liquid market and...

If you go long CCYs of high-interest countries you will almost certainly earn positive carry. Even after the broker margin the carry should remain positive for retail traders in most cases b/c EM interest rates are so high relative to DMs.

What did you decide to do? Not sure why you insist on futures. Why not trade an FX swap and keep rolling the fwd leg over at maturity?

Interesting thread, I'll keep watching. Thanks for sharing your ideas! Is this a purely quant approach or discretionary as well?

EUR short - Perhaps not directly after the press conference, but definitely in the near future. Equities long - After all, what places are left where you can put your money in today's NIR world?

FX volume is usually highest during early London trading hours and then again when NY comes in.

Ridiculous SNB decision really... More importantly, terrible implementation. They should have announced this at the week-end so market participants would have time to process the information. First quote after the announcement was around 1.05, few minutes later we were at 0.85. Large IBs/market...