Later this week: FOMC Announcement - expected to raise interest rates 1/4 pt. 10,000-units held long in USD/JPY will produce a virtual liquid gold mine spitting over $9 a week at you in interest (according to this source). Using 50:1 margin you'll need to hold a mere $200 of your money open to exposure in the ForEx market. That's a staggering increase of over 240% on your $200 - compounding affect (making interest on interest) will be in addition to this sum. Anyone trading merely in the direction of collecting USD/JPY interest? Any suggestions/tips on how to successfully maintain this type of core trade size without getting vaporized by drawdown? dRaWdOwN
Yes, I have suggestions, but you're not really looking for information. You're looking to flex your ego. Again.
Yes and how many pips at 50:1 can you lose before you blowout your $200? Every time the yen falls for a few months in a row, out come threads like this one. Then the yen spikes up a few hundred points and then it's back to the drawing board (and another alias). Regular as clockwork.
*shrug* ... I've never lost trading the yen. Let's put it this way... I have deep trading capabilities. ;-) dRaWdOwN