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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (72327)	2/3/2010 8:08:46 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 74559

To bring you up to date to another transaction as a result of hedging part of my EUR CD's Sold for 6 months forward the EUR and bought AUD (Australian Dollar) I received in exchange the interest difference which is 290 pips Then sold a Put for the same amount and date and received 344 pips which represent AUD 3440 per 100,000 EUR Total received 634 pips which gives me the equivalent of 6340 AUD for 6 months on EUR 100,000 If the EUR falls more than the AUD you collect the 5% in 6 months (4.1% plus 0.9% on the CD's) If it goes the other way you end up with around 164,000 AUD for each EUR 100,000 you sold On the EUR v RUB transaction as of (now) today I am ahead 4% unleveraged in 3 weeks (usual leverage of 1 ot 5 is 20%)