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Hi John
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On Tue, 26 Aug 1997 15:58:26 -0400 (EDT) JColanzi@xxxxxxx wrote:
>Any traders using Forex.I'd like opinions pro & con.
John
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So far as currencies are concerned, FX is the true market. It's
much more liquid than the futures, and you have access to cross rates
and currencies not available to futures.
You need to be careful with the interest rate differential.
eg if you are long the JPY/USD (actually short USD/JPY), then you'll
be paying interest on the position. Given that Japanese interest rates
are almost 0, this can amount to significant money if you are a
position trader.
The worst drawback is the paperwork. FX rollover contracts from daily to
a week out. The paperwork increase significantly and as rolls are matched
from period to period, tracking your trades can be a pain.
eg say you buy USD/DEM at 1.7993 on 8/1/97. On 8/2/97, the rolls are
1.8024 sell and 1.8022 buy. Normally the 1.8024 sell is matched with
the 1.7993 buy and you have a new
-------------------------------------
Name: ray barros
Tel : 61 2 9267 3470
Fax : 61 2 9267 3478
101/25 Market Street
Sydney NSW 2000
Australia
E-mail: ramon@xxxxxxxxx
Date: 08/27/97
Time: 11:51:42
This message was sent by Chameleon
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