Hi. I’m very new to forex.
I’m looking to implement the Kyle Bass trade, of going short the Yen and long gold. I have both a real and a paper IB account.
I can go long the USD/JPY no problem. To convert the USD exposure to gold, I was intending to buy the XAU/USD cross, but was told U.S. investors aren’t allowed to trade it.
That leads me to gold futures. I found the e-micro gold futures (MGC) on the CME. I’m wondering about buying long dated future contracts (I saw contracts for Dec '14 and even listings out to '17) just so I don’t have the bother of rolling them over frequently.
Is there a big downside to that? I know that spreads might be wider, etc., but as long as I use a limit order, is that okay?
I know this is a pretty crowded trade currently (at least on the JPY side), but I’m looking to hold it a number of years and scaling in.
Any thoughts on this approach versus alternatives?
Thanks!