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Let me clarify on this usdjpy trade. I have never before in my trading career (almost 4 yrs now) done such a trade. This was a very experimental kind of trade for me and it did not work out. About the calendar spread, its good news because you learnt something new today :) To give you some...

Correction: X1 was not at spot, rather it was at 8 big figures in the other direction. Vol curve was not perfectly symmetrical, so even when the distance between X1 and X2 from spot was net 4 figures, premium we paid was limited.

ummm....Allow me to explain. Taking a directional bet with spot would have exposed us to unacceptable levels of risk if the spot moved against us 5-10 figures. We wanted to not lose the macro position. The expected horizon of the trade at inception was 6-9 months. We were looking for a...

20-25 handle target was on the calendar spread trade not talking about this dollar yen trade. Hope that clarifies.

out half the position at 1546.5. Brought Stop on other half at b/e which is 1544.

Fyi, we were looking to make 20-25 handles on the trade.

You are using strong words - which is fine but unfortunately you are not reading carefully. I said it was a calendar spread - so I bought premium and financed it by selling premium. It was a long term macro trade to be played out over 6-9 months - prices could have moved against you 5-10 big...

Couple years back, I once allowed a position to run 12 big figures against me - since the trade was designed like that from the beginning. Core position was an calendar spread and delta was opportunistically hedged using spot. Guess how much I lost with the trade 12 big figures against me...

It is not really important how many handles trade goes against a trader. FWIW, a trader can have a stop loss at 6 big figures (as I had in this case). What is really important is how much % of the capital one has lost and how correlated a specific position is against other trades in one's...

Long 1544, 2 pt stop A bit risky but worth the shot

Thanks for a thoughtful comment. I have been very slow to respond as I have again fallen ill, after recovering last week. Due to this reason, I am sleeping very well - like 16hrs a day :) Just something to note, usdjpy being a proxy for risk aversion can have 5-10-20 big figure moves in...

Covered this additional 2.5% risk at 95.5 for a 2.5% PL. So, total booked PL = 4.93+2.5 = 7.43%. I am still waiting for a better price to close the trade.

Never observed this relationship before. Thanks for the tip! :) :)

out at breakeven from the original

out of add at 47.5 for +4. Keeping the original long entry from 1544.

Adding 1543.5

Long 1544

Thanks for keeping the tab!! This trade did not pan out as expected. I have decided to give myself few more days in this trade so that I can exit it at an opportune moment. I have shorted 2.5% risk at 96.5. Will cover it hopefully a tad lower and then report the total PL.

Hit Help Help. Not sure why it didn't appear in the last message.

Hit <Help> <Help> on bloomberg keyboard. you will get a much faster response to your question than posting on any board:)