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One thing to consider with PM is that IB has a magic algorithm in a black box you can't access that determines what your margin should be and it may not stay constant once you buy the security. So while you may be able to get 4X if you have the right offsetting positions in your portfolio today...

As a genX'r (mid 40s) I spend a ton of money as do my contemporaries. Now it's on things like travel, home improvement, and toys (boats, bikes...), 10 years ago it was on baby items, and 10 years before that it was on toys (boats, bikes...). And spend most of my day online, although I run a tech...

As I stated earlier, there is no guarantee that AUD will be at it's Dec futures price in Dec, you'll always be able to find times where that didn't happen. In fact the Yen carry trade worked great for years until it didn't. The forward price is purely mechanical from the interest rate parity...

You're right, sloppy wording. I should say a very low risk opportunity.

From my old copy of International Financial Management by Eun and Resnick on interest rate parity: Which one is right? In related news, the Dec 2016 AUD/USD futures are trading at 0.7480 on the CME right now while the spot is .7509. The high interest rate (AUD) is trading lower in the future...

Not sure what hedge funds you've worked with that take analysis on a company from their "broker"! As I said, brokers really only add value in large illiquid orders or illiquid commodities and they bring value from their contacts and ability to shop orders. None of which has anything to do with...

The math doesn't change if it's a .5% or 20%; sorry you got hung up on that it was for illustrative purposes (secret: there's no such currency as an LSD either). Listen, this is "textbook" how forex works, it is in fact in every forex textbook and I'll be happy to photocopy a page out of my old...

Central banks directly intervene in currency markets buying and selling their own currency all the time, let alone more indirectly impact it with rate changes. And have done so ever since Bretton Woods ended in 1971. Usually they announce it once they've done it, since letting everyone know what...

There's nothing to indicate that the forward no arbitrage condition would fail to exist when the rate first goes up, it's basic math and a basic forex concept. To spell it out, assume the U.S. and Lower Slovlack (L.S.) both have 0% interest rates. The U.S. raises their interest rate to 20%. At...

I'd mostly agree with your analysis of sell side analyst, but the OP was describing buy side. A hedge fund isn't going to staff an analyst group if they're not providing accurate information that the fund is acting on.

I think you have an idealized picture of a broker that, like Norman Rockwell paintings (or in this case a reverse Norman Rockwell), may never have existed and certainly doesn't exist now. A broker takes orders from customers and executes them. That is all. They don't do any analysis or talk to...

Since it's often their stated goal to move their own currency then I guess so. Kind of like saying Congress "manipulates" laws however.

Just a minor correction, the higher interest rate currency is the one expected to depreciate per the forward no-arbitrage curve. It won't necessarily do so, but at the very least the carry charge would reflect that expectation. So if you expect the U.S. to raise rates first, it would be the U.S...

If there's any truth in the underlying premise it would be this, as it did occur in the past. And we know that there was manipulation around fixing prices. None of which is really related to retail punters and their stops.

I have to pay the "vig" how exactly? There's not many places anywhere near where I want to be that you pay less in cash than putting it on a card. I maximize reward cards and never carry a balance, so I get back more from the cc companies than the merchant pays in merchant fees. Essentially you...

An analyst and a broker are not even near the same job my friend. Perhaps movies aren't the best place to get your knowledge on how wall street works?

My Matlab experience was the same as yours (EE?) and not terribly helpful for the finance side of things. You'll be tempted to do convert finance data sets to the frequency domain to see what you can find, and by all means give it a try, but it turned into a rabbit hole for me that never panned...

Solid gen-x actually. Millennials are all lazy and wouldn't have read the article, though right? Nice job on the stereotype. Kids these days, dammit get off my lawn! I did read the article; to do a little of my own stereotyping it was typical breathless end of the world hyperbole that I...

Total non-sequitur between a brexit vote and if the removal of the 500 Euro bill means there's a vast conspiracy to eliminate cash. And no, it doesn't really bother me. Less than 1% of my spending is in cash and if I could eliminate that I would.

Start that chart on Jan 1st, 2008 and it would show a very different picture. One where corporate profits are very volatile and hence demand a higher rate of return than wages, which are rock solid on the graph. You're comparing apples to oranges with the two, it's like saying muni's should be...