long RMB at Oanda

Discussion in 'Trading' started by richardyu301, Mar 30, 2008.

  1. I would like to short USD/CNY (ie, long RMB) at Oanda. But I am curious about how much interest rate I need to pay.


    Above link suggests that today's interests are:
    i) Chinese RMB... bid: -12, offer: -11 (pls note the -ve signs for both bid and offer)
    ii) USD... bid: 2.4, offer: 2.95

    Why are there negative signs for both bid and offer for RMB???? Does it mean that no matter I buy or sell I need to pay >10% margin??? It is strange as most of time we should get interest if I buy a currency.

    Is it b'coz RMB is not easily available so they need to borrow from somewhere else?

    Anyone can give me some insights?
  2. Daal


    no free lunch here. carrying that position will cost about -15%, market is already pricing in appreciation. the free lunch comes by going long USD/CYN getting paid 13.3% then hedging this by opening a bank account there. its a synthetic USD money market fund that pays a lot
  3. this is indeed a juicy, low-risk strategy.