Warning to Carry Traders (Perfect Hedge)
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Thread: Warning to Carry Traders (Perfect Hedge)

  1. #1
    I've been after ElectricSavant's carry trade (perfect Hedge) here in the public forum because it was posted. I just came across what appears to be a discussion on this egy on Oanda's message board. A poster claims he did the egy but was caught and made to shut down. Please read the facts here:

    http://www2.oanda.com/cgi-bin/msgboa...6;t=005275;p=3

    I'm not a member of the PF however but have thought doing so egy also. I'm not sure. Can somebody who's if this may be done confirm?

    Thanks in advance

  2. #2
    Quote Originally Posted by ;
    I have been following ElectricSavant's carry trade (perfect Hedge) here from the public forum since it was published. I came across what seems like a discussion on this same egy on Oanda's message board. A poster asserts he did the egy but was caught and made to shut down. Please read the details here:

    http://www2.oanda.com/cgi-bin/msgboa...6;t=005275;p=3

    I am not a member of the PF yet but have considered doing so egy also. I'm not sure. Someone who is if this can be carried out 11, confirm?

    Thanks in advance
    Forex brokers don't allow traders do interest arbitrage. They ch and could inspect u .

  3. #3
    Quote Originally Posted by ;
    I have been after ElectricSavant's carry trade
    The ribbon you've reported is on interests arbitrage not standard carry trading (as the ES's one is an example)!

  4. #4
    Quote Originally Posted by ;
    The ribbon you have reported is on interests arbitrage not normal carry trading (as the ES's one is a good illustration )!
    Croesus I had been speaking to Cash and Carry Perfect Hedge not Conventional Cash and Carry or interest Arbitrage. Here's the beginning of the thread in Oanda:

    The secret is to be hedged on a carry trade position whilst collecting interest.

    Open an account in Oanda and another at either FXCM or even Marketiva and then choose the No Interest Account; meaning your open positions will not accumulate or get charged interest. Next go long a paying interest pair such as AUD/JPY in Oanda and brief the amount of AUD/JPY in the No Interest Account. You will be hedged minus the gap in the spread. When you get close to a margin call in account near positions, move funds and re-open the short and long positions.

    Hopefully next time you open the rankings you will have gathered enough interest to open bigger positions thus amassing more interest and exploit the power of compounding.

    Considering that the funds are with two distinct accounts it wiil take some opportunity to move the appropiate amounts and reset. You are going to want to have enough money in both accounts to prevent having reset and to shut the rankings.

    Remarks? ....

    Is not this exactly the same as mentioned by ElectricSavant which was called Cash and Carry Perfect Hedge in an older thread here in the public forum? :

    Originally Posted by ElectricSavant
    People and TradeVestor's

    I simply mailed a check for $2,500.00 to Oanda and $2,500.00 to FXCM.

    The title of the Journal in the Private Forum is Cash Carry (The Fantastic Hedge)

    You are welcome to check in anytime to see the progress. I hope to see you there.

    I've another Journal called Cash Carry (Exotic) but I'm trading it in the Simulator as all my funds will trade the fantastic Hedge to quickley take advantage of this while it is accessible.

    I must tell you that opportunities such as this are far and few between. And just picture.... That you read it here in the forum in an open forum! . . .can it be true?

    I have been trading for 28 decades and I can't remember such an opportunity presenting itself. There was some candy arbitrage opportunities in Futures although I might have exploited, but its only once or twice that you get opportunities. These opportunities are NEVER shared. I really don't imagine that half of you understand what's being proposed here and what this is. Newbies, you don't know if you have read this thread, how fortunate you are and comprehend what a fantastic Hedge is.

    Really the responsible thing to do would be to cherish this information and to use it sensibly. You are profiting along with the general public illuion of the may shut the loophole faster. Perhaps the thing to do it to erase this thread. . .but I will leave that up and that I will not do it. If somebody were to say for you here...I wish to give you one million dollars, however, you shouldn't tell anyone, because I will not give you anymore. But if you can keep your mouth closed, I'll give you 1 million every month. That is true here. . .let's not get this loophole closed prematurly.

    Michael B.
    P.S. I had a trader associate of mine check the quotes on FXCM and compare them to Oanda, and they're shut....very close!

    P.P.S.. The thing to do this, would be to let your dealer/marketmaker have some money from you. . .please give a spread occasionally to him and reset. They are in business to generate money, so let them have some, don't get greedy and your hedge wills balance and you may start again.

  5. #5
    Quote Originally Posted by ;
    I've been after ElectricSavant's carry trade (perfect Hedge) here in the public forum because it was published. I came across what appears like a discussion on this egy on the message board of Oanda. A poster asserts he also did the egy but had been captured and forced to shut down. Please read the details here:

    http://www2.oanda.com/cgi-bin/msgboa...6;t=005275;p=3

    I'm not a member of the PF however but have considered doing so egy also. Now I'm not sure. Can somebody who is verify if this may be done safely?

    Thanks in advance
    I read that article at Oanda and Need to wonder. What exactly does the man mean by get captured. The broker tied up his money and he had trouble getting it back? What did he do wrong? What was illegal about his hedge?
    If a broker can do this then Forex is the west.

  6. #6
    Quote Originally Posted by ;
    I was Speaking to Cash and Carry Perfect Hedge not Standard Cash and Carry or interest Arbitrage. Here is the start of the thread at Oanda:
    mmmmm... okay, my fault!

  7. #7
    I don't think retail traders might have the ability to fool market makers or brokers for a long time. . .The case we are referring to in this would be to cause damage to both market makers, you force them to cover attention since you are long the currency with the higher interest rate, and also at precisely the exact same time short this currency with the higher interest rate with another market maker but not billed. . .Although FXCM understand they are not going to charge you attention, but they also understand they are not going to give you some attention. . .You are simply manipulating the machine, and the market makers won't let it just pass on, or else, everybody will acquire handsome amounts of money from their pockets...

    Forget about it men, even if There's Nothing illegal with it, they will find something out to make it illegal and prevent it in the future, likely when you get caught with such a situation...


    Thanks,

    Nader

  8. #8
    Quote Originally Posted by ;
    Forex brokers do not allow traders do interest arbitrage. They ch and could inspect u easily.
    Will brokers withdraw non interest bearing accounts? I doubt it. Let's just think about how a broker manages their risk exposure. The broker will constantly attempt to achieve a place. They will bucket any transactions if they see that a substantial imbalance and that they could. OK let's assume that the whole retail spot Foreign Exchange trading community try this small curiosity arbitrage trick. Instead of 50 percent of FXCM's customers being long, and 50% being brief everyone's taking long trades as perfect hedges against interest bearing shorts at Oanda What can FXCM perform in this circumstance, they are made to have a scam brief, and of course they earn interest, they make to maintain. So that they get the spread, retain and they get to make the attention. They have to play with your money whilst you play with money inside the bucket store. Additional to which a proportion of new traders will fail to manage positions properly, or possess funds to exchange the procedure. Why wouldn't a broker want this kind of business?

  9. #9
    Anyone trade the US dollar index USDX on the NYBOT? Could be a way to hedge an interest-bearing US dollar denominated Foreign Exchange pair.

  10. #10
    Why should you just buy the USDJPY and buy yen stocks to offset? Futures dont have rollover isnt this the perfect hedge?

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