Discussion in 'Forex' started by Daal, Dec 21, 2006.
Against a possible carry trade goes bust?
Why would you expect that to be the case?
Cause you own the same amount of bubble as you own of insurance against it
If you are long carry trade via short yen with everyone else, then offsetting with long CHF won't protect you.
I'm long everything in the title
If you are long CHF/JPY, adding GBP/AUD -- long or short, in any ratio -- is most certainly not a hedge.
I'd suggest that you read up on the concept of statistical correlation. Then study correlations among the various currency pairs. Look at mataf.net or run your own in Excel.
short USD and long all these currencies, guys
then yeah if u also short the usd u are technically hedged. me thinks.
However it plays out in relation to a carry trade liquidation, you are certainly not "hedged" against the dollar.
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