GBP/JPY Trading 2008

Cambist · Jan 9, 2008

Quote from atticus:

Cambist -- keep your TPs shallow. We will likely see some strong equity markets over the next two days.

Thanks for the tip. I usually get out a good 20% above/below the general range on my range trades and try to get in positions higher or lower than that. It allows me to keep tight stops and still go for decent profits.

These ranges have been like taking candy from a baby the last couple days. Getting burnt once wouldn't even leave a flesh wound and it's bound to happen once. I'll have no problem flipping my position

BigFunky · Jan 9, 2008

Quote from atticus:

Taking a shot on an overnight bull-delta NT on GBPJPY. Traded it 10x; 20,000/24,700. This is a poor risk-reward shot paid for by a successful NT expiration on GBPUSD. Not for the faint of heart.

Why trade 10X?

Is there a maximum the broker will allow on a single box option?

Cambist · Jan 9, 2008

Well, for some reason my order didn't fill as the price traded THROUGH 161.35 so I had to cancel it and go to market.

Short EUR/JPY now at 161.367

atticus · Jan 9, 2008

Quote from BigFunky:

Why trade 10X?

Is there a maximum the broker will allow on a single box option?

$2,000 per box; $20,000 account limit.

I have a sell on EURJPY at 161.70. Perhaps we should limit this thread to JPY crosses rather than simply GBP.

bigmrfrank · Jan 9, 2008

Quote from atticus:

$2,000 per box; $20,000 account limit.

I have a sell on EURJPY at 161.70. Perhaps we should limit this thread to JPY crosses rather than simply GBP.

If everyone is in agreement then fine by me. I trade most all of the JPY crosses. Some semi-auto so I could do some live calls on them.

Any reading material on currency options?

Cambist · Jan 9, 2008

I just took profit on my G/J longs at 215.31 for a 97 pip gain. I'm not confident enough to sell it, but it seems lofty here.

atticus · Jan 9, 2008

http://www.amazon.com/Options-Structured-Products-Wiley-Finance/dp/0470011459

I've not read it, but he's well-regarded.

ForexPro · Jan 10, 2008

I would just sooner the thread stick to GJ, as all other jpy crosses are correlated to an extent. Keep it simple.

ForexPro · Jan 10, 2008

closed at 215.42 +40pips. Too much event risk with the BOE annoucement (i think they'll cut, which will pressure the cross)

Cambist · Jan 10, 2008

Just shorted at 215.65

I'll be awake just prior to the BOE announcement and keeping a close eye on this one.

Target is set to 214.65

I also have an order in to buy at 214.00 and stop/flip position at 213.40