Is there a particular reason you prefer BZF to the CME futures (http://www.cmegroup.com/trading/fx/emerging-market/brazilian-real.html) ? It's funny, IBKR allows trading of RUB, https://www.interactivebrokers.com/en/?f=/en/trading/pdfhighlights/PDF-Forex.php but BRL is not provided, even though the latter is a more stable currency.
Hi, True. I recall that Martinghoul made a similar suggestion. The question is, is that available to retail traders? As far as I know, there aren't retail forex houses offering options that go several years out. FXY, the yen ETF, only has options out to 2017
These futures are extremely illiquid. At least the last time I checked then. The need to constantly buy and roll over them will probably take away a lot of the currency yield. I will check them again monday
CME has options on JPY futures, http://www.cmegroup.com/trading/fx/g10/japanese-yen_contractSpecs_options.html?optionProductId=71 and on the Nikkei USD contract: http://www.cmegroup.com/trading/equ.../nikkei-225-dollar_contractSpecs_options.html but obviously the spreads may be wide. The most simple suggestion I can make is to simply go long USD/JPY, that way you don't need to worry about losing money on wide option spreads.
I would assume that there will be January 2018 options available in about 9 or 10 days, once the January 2015 options expire. Although Yahoo Finance is telling me that the FXY January 2017 60.00 put is offered at $1.05, which is a premium of less than 1.3% for a strike price about 25% away. Cheap hyperinflation insurance if you believe it happens within 2 years.
EURCHF, incredible move. too bad it didn't seem to be hinted before hand. I also didn't hear about anyone talking of this trade so I never even considered. Crazy move
This is why I keep insisting in the short USDHKD trade. The payoff is so ginourmeous if the trade works out. I'm thinking of shorting USDHKD in the same proportion as my USD balances. Effectively swaping the USD for HKD while still retaining the yield of my securities (oanda charges 0.125% for USD lending but I get 1.45% in my USTs Then I can ocasionally lever up if I want more exposure
The question is, what is the credit risk of Oanda? We will see if they take a hit on this EURCHF move. IB charges too much to short USD
Not sure about Oanda, but FXCM is in trouble: www.elitetrader.com/et/index.php?threads/fxcm-owed-225-million-by-customers-who-lost-on-chf.288998/