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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: penderjus who wrote (33432)	9/22/2000 7:43:48 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

I am converting my $ assets in euros, that does not mean I am short $ as I am not carrying a leverage position or fx position, it is a directional trade of keeping your currency most beaten down.. Like yesterday I sold my sterling loans on my $ assets in US and converted them to $'s, before that I had an exposure as my assets were in $ and loans in £ that was taken out at 1.64 level now at 1.43-4 I thought to book the profit and reduce the risk of exposure, now I not only reduced my risk as I am expecting a rebound of sterling from 12 years low I may do well, but it has all to do with my actual requiremnets, shorting $ would be to sell a million and buy equivalent amount of euro if euro head south as a result of no in Denmark the margin call alone or top up requirement may put one out of the game.. little conservative but safe strategy,, from puritan point of view it is long euro and not short $ as my exposure is only ion euro i am not leveraged or I don't have an fx transaction to worry about, it is like buying stock on cash or calls without limitless loss potential, whereas I have here a possibility that in $ terms my assets may reduced but no chance of a call to cover deficits.. <<Im long euro, short dollar, and long gold and osx, with qqq puts. >> This a good strategy for you but for me this is double trouble, if Comp will fall $ will fall gold will run higher and qqq puts will come into money but if 1% chance that comp rises where do you stand, Iwork to protect that chance, I am long my core i will not sell, I will be long old economy, long bond and have protective put options 1400 on break of my supports, my loss potential is limited some what I am in hte game but I am playing the side of the market that has led the markets so far, within markets why not to long bond instead of shorting market if Comp has to go long bond will rally so that is for me a better hedge.. fwiw..qqq puts are great but options on SPZ are more liquid..