Hedging GBP/JPY

Beginner Questions
1

hello everyone,I’m very green with FX although an experienced stock trader/investor

My question is hedging GBP/JPY
Depending on premium I may buy or sell options as part of a hedge,are there any volatility sites or discussions on the likely range of IV

Any differances in TA with forex over stocks?

And finally any fundamental info useful for these trades?

Thanks for your help Zulu

2

Zulu111,

There is a thread on the GBP/JPY Hedge at this link:

http://www.babypips.com/forums/free-forex-trading-systems/1773-forex-hedging-system-get-rich-slowly.html

I Don’t know if it is the info you are looking for, but it may help.

Have a good one!

3

Welcome, zulu111!

If you’re an experienced stock trader, one of the most difficult transitions to forex will be accepting and adapting to the lack of price transparency and lack of centralized clearing. You are trading only with your dealer.

I suggest looking into the mechanics of forex trade execution when formulating your trading plan and deciding which time frame to trade. Ask your dealer if they act as agent, principal, or both. Good luck with that.

Another factor is the extreme leverage available. Unless you’re a prop trader, you’re getting at best 10:1 in equities through a direct access broker. Factor in 400:1. Yeah.

These forums are focused mostly on otc spot forex pairs. Option strategies are more suited to currency futures. Some brokers do offer “hedging”, or long and short positions on the same pair in the same account. Sorry, no Delta or Gamma here, and I think Theta and Vega just left.

Also, news trades have quite an impact. IMHO, compared to equity markets, retail forex is super sensitive to news- think otcbb.

Check out Fundamental-ville threads for some decent discussion and useful links. Best of luck.

4

Are you looking for this hedging system?

There are so many trading systems available to Forex traders. Some system are free, some costs thousands of dollars to purchase. Almost all of them use some kind of technical indicator. Almost all system is trying to speculate where the market will move and thus trade in that direction in hope to make profit.

Well, the system I am sharing is a little difference. The purpose is not to beat the market, but the strategy is the open position in such a way that neutralizes the movement of the market and thus we can collect fat interest every day.

If do it correctly, this system has low risk and produce consistent profit.

The strategy is very simple, Long (buy) the highest interest paying pair (gbp/jpy) at the broker that pay the highest interest rate and Short (sell) this same pair at another account that charge no interest.

That�s it! You don�t need to read chart or setup indicators. If you hedge 1 lot, you are making $26 a day and if you do 10 lots, you are making $260 per day 7 days a week (you collect interest even on Saturday and Sunday).

If you need high interest paying account or no interest account, email me at <[email protected]>

5

Thanks everyone
Bongrak
This is pretty much exactly what I aim to do,basically borrowed yen for my property portfolio and looking to hedge currency risk no gearing

The mechanics of trading forex look a bit alarming!!!but will look into it so thanks for the advance info

Any more tips gratefully received Zulu

6

Zulu:

If you can use leverage, may be you can make much more from your investment.

I just sent you an email. Check it out. Try small account to see how it works. Then you can increase the investment when you understand the mechanic of this hedge and carry trade.