Trading gbp/jpy trough major pairs???

Discussion in 'Forex' started by siki13, Aug 16, 2007.

  1. siki13


    Lets say for example that i sold today 10 million gbp/jpy at 229.30 and buy it back later at 221.79 for 751 pip profit (645k$)
    If i want to do that trade trough majors
    GBP/USD and USD/JPY what would my position size be?

    Here are currency rates today when gbp/jpy position was opened and closed

    GBP/JPY 6AM 229.30 ,1PM=> 221.79
    GBP/USD 6AM 1.9823 ,1PM=> 1.9775
    USD/JPY 6AM 115.68 ,1PM => 112.14
  2. WharfRat


    You'd sell 10 million GBPUSD and sell 19,775,000 USDJPY, so the notional USD exposures would cancel out.
  3. I'm not being a smart ass but ... why would you want to? What am I missing? I sold GBP/JPY @ 239.41, added another 50% to the position @ 238.14 and another 50% @ 232.39 and sold all @ 222.47. I'm extremely pleased with the results. Bought @ 225.58 but watching closely.

    Just went flat @ 226.77 and waiting for a fresh signal.
  4. sim03


    You're close. Selling at 6 AM, when GBP/USD quote was 1.9823. The replicating trade would be: short 10,000,000 GBP/USD and short 19,823,000 USD/JPY.

    siki13, doing it that way would require twice the margin of the GBP/JPY trade at most dealers. For example, almost $400,000 vs. almost $200,000 with a 100:1 account. Brass balls and suicidal personality not included... trading this pair at that leverage, you could get a margin call and blow out half your 6-figure account in minutes if not seconds. Nice hypothetical example...

  5. Just sold @226.41. Interesting day.
  6. Flat @ 225.08
  7. siki13


    This week i started to trade gbp/jpy and i was trying to figure out why was my GBP/JPY trading easier than
    taking trading signals from gbp/usd and usd/jpy.
    It still does n`t make sense but at least now i know what position i was actually taking.Maybe was just easy week to trade.