just curious as i have no experience in fx. But why is there a future on rmb when it's fixed to the usd by the government?
Blah, I do as part of my hedging plan. It is a pain in the a** to do though and it is hard to get in and out. RMB is not longer fix to US dollar. No possible after what Ben did. China has higher inflation and less of a growth problem than US.
Is anyone else trading this retail? I went ahead and set aside half of my trading capital that I will not be using yesterday, looking to catch a couple hundred pips or so in the next 2-3 weeks. Hell of a lucky entry, I will admit...the USD dumped some 250-300 pips in the next six hours and my T/P was abruptly taken out for a about +150pips. Spread was 40 when I entered and ranged up to 65 about an hour after my entry. Screen shot... <a href="http://s24.photobucket.com/albums/c26/sammybiker/?action=view¤t=usdcny.jpg" target="_blank"><img src="http://i24.photobucket.com/albums/c26/sammybiker/usdcny.jpg" border="0" alt="Photobucket"></a> I've been trying to find more info on actively trading this...and with the US news being pretty hefty in the coming weeks, I would expect more drops. Longer term, once the Olympics are done with this Summer...
It isn't pegged anymore, it is a managed float. It trades within a daily range set by the government. So it can go in either direction, but limited in the amount it can move per day. government controlled exchange rates ultimately fail. Soros made a killing by betting that the Bank of england couldn't maintain the pound within the ERM. so there is a future trading rmb