I did hear from sunday/monday , mentioned it in FX thread, about bernanke letting slip economic upside /stability ahead for US economy, anyhow a couple of commentators, and they could of been speakin tosh for all I know, what with the fundamnetals and all that, but they say.
swift 13% dollar pullback....on any whiff of US economy improving as the flight to dollar safety trades will be unwound etc, so i thought well thats cable towards 1.60 then.... and that was that..
LOL
Now the one thing that may help longer term pin traders, looking to hold for longer periods , and deal with news releases etc which might have a direct impact on their pair, is to think of using the "Spanish Hedge" oooh mate....yes from The Oil hola :?::!:
Now it would enable folk to hold whatever position they had prior to the news release coming out . The cost will be an extra spread, no extra margin, there are some firms that enable you to be long short the same pair/ time, in same account as seperate trades etc..
Now often some folk, long and short same pair, are you mad? whats the point, I see no point, that means your flat etc.. Well, it enables the risk on the release to not be there for the longer term trader. Also you can then at ones leisure "drop a (or trade out an extreme) leg" or close both positions at once and lock in whatever the pre release profit (loss) position was.
Pro's
able to hold market position and wait for volatility to ease/exploit it
zero worry on any news release
ability to trade out and drop a leg post release when full technical assessment/ market normality returns .
cons.
extra spread.
the loss of sensation of your asshole chewin cloth as pairs tank / explode off the charts etc
So to engage or deploy a "Spanish Hedge" pre news release may be a suitable consideration for those who see merit in its use.
oooooooh mate..... ummmm.. :cheesy::!:
:?: