Sold 5mm units at 211.14... no spot position. $82,400 net loss on spot. 215.20 barrier will go unhedged.
Tell me about it. Everything is moving and at THIS hour. Heck all the pairs my systems trade (eurusd, audnzd, audjpy, gbpchf) are moving. Diversification my arse lol.
Wow! Your original 7mm spot long of GBP/JPY @212.73 took the risk of profit/loss as per the movement of GBP/JPY which you have closed out now at a loss. .But still 215.2 No touch bet may salvage the losses if GBP/JPY keeps falling or does not reach the barrier right? I have heard Banks eat a bit of spread carry interest & pass to you the balance. NZD/USD=Long +2.5% ,Short -3.5% GBP/JPY=Long +3.5% ,Short -4.5% NZD/JPY=Long +4.5%,Short-6% some thing like that? Another Scenerio: What if GBP/JPY reached say 217 on expiry day? You loose the One touch premium but ride the long profits +carry interst right? Thanks
Sammy -- no spot interest beyond what I earned yesterday, which wasn't much. I've got the full debit risk on the barrier.
Hi Risk Arb 2pm here & I just having lunch at my desk. USA 1AM (EST) or 10PM (Pacific)--You are Burning mid night oil watching Nikkei I suppose! Thanks for your instant reply.
Yeah, I hated being in it at 21260. I had to dump the remaining spot when it traded to 11s. We're at 07s now and I am tempted to buy, but I won't. The upside barrier is 800 pips otm, trading at $250k. I am going to run a carry matrix and reduce the exotics on fx. Stat vols are > implied vols by a wide margin, not good for selling gamma. Sorry guys, but that's the last fx carry/exotic for a little while.