This is for those who are educated in the fundamental aspect of forex.
I was wondering how signicant is the carry trade play in the market. I know there are various reports that come out and I want to know how they compare to the basic idea of the interest differential?
And also do you guys think that it would be an 'edge' to only open positions in the direction of the carry trade? The reason I suggest this is because, sometimes trend takes time to happen, and in the time that it's stagnant or moving sideways, those who open positions against carry trade have to pay interest. This helps in reducing costs even further right?
When i look at charts, moves against the carry trade seem to be fast and temporary before the carry trade takes its course again. And those moves against the carry trade doesn't happen too often and it's usually a correction to the whole trend. Would it be statistically advantageous to go with carry trade as a trend trader???
Hopefully people can enlighten me on this.
I was wondering how signicant is the carry trade play in the market. I know there are various reports that come out and I want to know how they compare to the basic idea of the interest differential?
And also do you guys think that it would be an 'edge' to only open positions in the direction of the carry trade? The reason I suggest this is because, sometimes trend takes time to happen, and in the time that it's stagnant or moving sideways, those who open positions against carry trade have to pay interest. This helps in reducing costs even further right?
When i look at charts, moves against the carry trade seem to be fast and temporary before the carry trade takes its course again. And those moves against the carry trade doesn't happen too often and it's usually a correction to the whole trend. Would it be statistically advantageous to go with carry trade as a trend trader???
Hopefully people can enlighten me on this.
Working towards CME membership