Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (6157)	9/4/1998 12:24:00 PM
From: Paul Berliner	Respond to of 9980

Ramsey, all currency traders place a stop at a comfortable point below the current market bid in order to protect themselves against an intervention, for example, which would wipe them out (because they're highly leveraged). As the position becomes more profitable, the trader moves up the stop in tandem. I think the funds still made quite a killing shorting the yen because they were surely all in at costs basis' under 120. This is a position most specs have held for 6 months to over a year. The stops triggered by their coverings set of a chain reaction of stops set by trading houses and other institutions. It's not like the yen went from 145 to 135 overnight, so I don't think anyone's in the poorhouse because of it.