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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (681)	9/20/1998 5:35:00 PM
From: Henry Volquardsen	Respond to of 3536

Lee, use IMM currency futures. the futures trade at the appropriate forward rate which reflects interest rate differentials. If you sell yen forward and buy dollars you will do so at a discount which reflects the interest rate differential. Henry

To: Lee who wrote (681)	9/20/1998 9:00:00 PM
From: Mark Myword	Read Replies (1) \| Respond to of 3536

>> The main reason I wouldn't short the yen, or other currency, is that I never have made such a trade. From this thread I have learned its rather easy to do, borrow in one currency and deposit in another. Can someone provide contacts that would facilitate such action? << Lee: The easiest way is to trade the contract on the Chicago Merc - the IMM yen contract. Simply call your commodities broker and sell the near-term contract, in this case December. The Mid-America has a half-size contract if you want to wade in slowly. The yen is very volatile, as I'm sure you know. I would not trade it without stops, unless you have a hefty bankroll! Rgds