Nice try, but here's where your grail starts getting really rusty.
Firstly, while you are correct that at 97 AUD/JPY you could technically never lose all your money if you used $100k to back stop a 1 lot position, your return on that money, based on your figurings would only be 6% annually. That's horrible compared to what you could get in other vehicles on a risk adjusted basis.
Right, you could put up less money. At $20k your return would be 30%. Sounds good, but if AUD/JPY were to drop to 20 points your initial deposit would be wiped out in the margin call.
And here's the real killer. AUD/JPY is as high as it is in large part due to the interest rate spread. When that spread eventually starts to narrow, which it most definitely will at some point, you will get less and less on your spread and AUD/JPY will fall. Double whammy!!
|