Looks like their little experiment backfired. The actions of the BoE over the past few weeks has been Very embarrasing. I'm looking for someone to make me good odds on Lomax being the next in charge. Worth a punt!!
Agreed, when some institutions/players give or pay you, you know you need to reverse as soon as possible or you will be wearing the trade 10-20 points higher in seconds. Very difficult to do!
It's a shame for the trader as trading currency pairs with large interest rate differentials can be quite costly then. Probably a much better idea to trade the future.
Yes, 2 full points seems excessive even though I am not clued up on the world of retail FX. Can't believe this is what they charge for an overnight swap in the Euro and cable when they probably get competitive rates from their clearer.
I don't want to sit here and argue about the pros and cons of swift, (I would be far from an expert on the subject) but the fact that someone would give away so much of their profits (more than 50%) with no base salary and an expectation of having to pay desk and other fees strikes me as...