Gatman recommended this - how do I buy Gold in Yen?

M

mizhael

How to implement this trade using Gold futures and JPY futures on CME?

I am thinking of long GC futues and short JY futures...

Gatman mentioned long of 7 units of gold and short 4 units of yen and 2 of the eur...

What does he mean by "unit"?

For my case, do I just replicate the trade of long Gold in Yen by long some GC futures and short equal USD dollar amount of JY futures and maintain dollar neutral(rebalancing daily)?

Thank you!
 
Quote from mizhael:

How to implement this trade using Gold futures and JPY futures on CME?

I am thinking of long GC futues and short JY futures...

Gatman mentioned long of 7 units of gold and short 4 units of yen and 2 of the eur...

What does he mean by "unit"?

For my case, do I just replicate the trade of long Gold in Yen by long some GC futures and short equal USD dollar amount of JY futures and maintain dollar neutral(rebalancing daily)?

Thank you!
More...

JPY futures are long yen. It's JPY/USD. It will be costly to rebalance, so why not simply open an Oanda account and buy XAU/JPY?
 
Quote from atticus:

Typo, Gartman.
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I figured that just wanted to make sure. Gartman has been around long enough to pay attention to. As for the OP, I would do the long of 7 units of gold and short 4 units of yen and 2 of the eur... because that is what he said to do.
 
Quote from atticus:

JPY futures are long yen. It's JPY/USD. It will be costly to rebalance, so why not simply open an Oanda account and buy XAU/JPY?
More...

Is opening an Oanda account the best way to long gold in yen? What are the pros and cons of trading XAUJPY?

In the long GC futures and short JY futures trade, do I really have to rebalance every day?
 
Quote from mizhael:

Is opening an Oanda account the best way to long gold in yen? What are the pros and cons of trading XAUJPY?

In the long GC futures and short JY futures trade, do I really have to rebalance every day?
More...

Long GC is funded in USD, so you would be a buyer of yen futures. I think your better off buying the natural at Oanda. The variability wouldn't require even weekly rebalancing, but why bother?

100 units at Oanda is $100 wide and the haircut is $2,800 USD.
 
Quote from atticus:

Long GC is funded in USD, so you would be a buyer of yen futures. I think your better off buying the natural at Oanda. The variability wouldn't require even weekly rebalancing, but why bother?

100 units at Oanda is $100 wide and the haircut is $2,800 USD.
More...

The spread on 100 units is now $33 wide in USD. The $100 reflected the holiday spread.
 
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