Ladies, gentlemen, I post rarely an opportunity here on Elitetrader. But this one is too precious to miss for the community: You can see this GOURMET GAP with you sheer eye! So, long NZD Futures front month! More than 600 pips are the opportunity for this trade. Risk/Reward = set it as you wish 1:6, 1:5 whatever! I will start wiith a lousy 1000 contracts. Let the feast start! Nighthawk PS: Don´t forget to hedge your a$$ with some ATM put options! It´s called "dynamic hedging strategy". And for all the rookies out there: yes, it´s strategy developed and mastered by Goldman Sachs. Have fun!
Now this is actually interesting. Only thing is......those guys get to use forwards at set prices to hedge. It's basically a risk free bet.
I rarely trade fx but I'm from NZ and currently short NZDUSD. Large size. New govt wants to devalue the $ and have more influence over reserve bank. The deputy PM and key collation partner has said he would devalue the New Zealand Dollar to reflect its "true value".
It's distinctly looking not very risk free today... I'd echo the previous poster in response to this: "say what?"