Category: Money tips Release Date: 2006-06-13
Q: But you can in two different currencies according to the size of the contract amounts to adjust the number of contracts bought and sold?
Answer: Indeed, but in the interbank foreign exchange market is more easy to achieve.
Q: I think you engage in cross-trading, are denominated in U.S. dollars, right?
A: Yes. You only have to say: 100 million U.S. dollars to buy the deutsche mark, yen sold 100 million U.S. dollars on the line. Bank foreign exchange market, the dollar is an international unit of account.
Q: If unexpected condition occurs or the United States with the expected economic data released so far apart, so that the foreign exchange market prices show sharp swing, the interbank foreign exchange market, price fluctuations than the currency futures market is small, or the people who make these arbitrage the market close the connections?
A: The people in these two markets arbitrage engaged in arbitrage trading, the two markets will have considerable related sexual.
Q: The interbank foreign exchange market's response to emergencies is less extreme?
Answer: Yes, because of currency futures market, traders are often in the venue of stop-loss appearance. At this time only by arbitrageurs who admitted to maintain market stability.
Q: Why are currency futures market for foreign exchange transactions can not play an important role?
A: The currency futures market is not an efficient market. The use of foreign exchange futures market in hedging transactions (hedging) are often subject to contractual maturity date and the amount of the limit, but the interbank foreign exchange market will not be so, everything is according to their needs and banks.
Q: What currency futures market and the interbank foreign exchange market will not be able to compete, is it?
Answer: Yes.
Memorable "黑色星期�quot;
Q: Can you talk about how your fundamental analysis, how do you determine a reasonable market price?
A: I assume that the market price of the day is a reasonable price, but I judged that those factors can lead to price volatility. Smart traders should be able to make various changes in assumptions. I will draw the world's heart condition may occur, and then wait for the evolution of events to be confirmed. Of course, the final status of most of these assumptions can not be achieved, but you will suddenly discover that one of them is similar to the real world, which is the real world, confirms a certain hypothesis.
For example, in the famous "黑色星期�quot; global stock market turmoil that day, I suffered insomnia, and I'm sure the night of insomnia in more than one of my absolute traders. The next week, I have repeatedly assume that things that might happen this week, as well as the impact of these things against the U.S. dollar. I tried to make assumptions from various angles, one of which is the global financial market will be completely caught in panic among the. In this case, the dollar will become a haven for the maintenance of global financial order. This means that U.S. dollars will result in a big margin. Sure enough, I was not expected, in that week of Tuesday, the world's capital has to switch inputs from the other markets of dollars in U.S. dollars drawn drama yang. In the next three days', the dollar rose Quotes continues until the weekend, began to fall again. By that point, I began to understand that my assumption has been confirmed, and I also believe that the United States to safeguard their own interests, such as to prevent the widening trade deficit, U.S. dollar is bound to intervene to suppress Quotes.
Q: You have to understand your assumptions until Friday confirmed, before taking any action at this time, is not it too late?
Answer: Yes. That weekend, I really struggled to live with, because I know next Monday at the end plate on the U.S. dollar may be dropped. I have been waiting for the U.S. local time Sunday night, the Far East currency markets to open.
Q: Do you have a number of foreign exchange transactions are conducted outside the United States do?
Answer: Yes, first, no matter where I carry the world's foreign exchange market monitors. Secondly, I have an assistant on duty 24 hours a day.
Q: You are not asking for your assistant in the foreign exchange market in a major change, immediately notify you?
A: Yes. First, we will set the scope of possible fluctuations in the day, Quotes, Quotes exceed this level if, my assistant will immediately notify me
Q: Are you often in the middle of the night received a telephone assistant
A: I often joke and an assistant trader, saying only that he woke up I have twice a year. However, this situation is not often occur, but also unnecessary. Foreign exchange market in my home is equipped with monitors, so I can always grasp the currency changes. In addition, the assistant trader, one of the main work is the middle of the night up to answer the phone. Sometimes he gets phone calls at night in a 4 to 5 times.
Q: Are you saying that you authorize the evening trading assistant trader to make?
A: We have at least weekly to make a similar table-top exercises, assuming a variety of possible scenarios, as well as countermeasures.
Q: So, your assistant know how to do, for example, a foreign currency fell to 135
Answer: Yes, he knew that the buying or the selling of these transactions have been arranged in advance the decision-making actually good. However, if a major emergency situation, such as the resignation of Prime Minister of a country or a government devalued its currency, the Assistant or will immediately notify me.
Judged that the risk of transaction control
Q: You mentioned the importance of risk control, as well as positions held should have the confidence necessary. What do you think should bear the risk of each transaction, how much?
A: First of all, I will try to control the risks of each transaction, the portfolio value of less than 1%. Secondly, I will judged the relevance of each transaction. To further reduce risk. Every day I will make computer analysis, and understanding the relevance of holding positions. With the accumulated experience, I understand that in terms of holding the relevant parts of the mistakes that may lead to significant trade-off the crisis. If you hold eight highly related to the site, which is tantamount to the size and risk involved in a one-fold the original big deal.
Q: This is not to say that if you are optimistic about the deutsche mark and Swiss franc at the same time, you will choose a preferred currency to compare his own, after a long time to do more?
A: It's true.
Q: the Deutsche mark and Japanese yen cross-rate changes in the exchange rate will be lower than a single currency exchange rate fluctuations do?
A: This is not always the case, such as the recent cross-sterling exchange rate against the mark once in fluctuated between 2.96 and 3.00, while a month ago to break 3.00 level. However, it is a breakthrough before, due to the intervention of the Bank of England, there were 20 failed attack on a record 3.00 points. Later, the Bank of England has finally abandon, while the cross rates onto the 3.01, it is not no deal. In fact, until the cross-currency rose to 3.0350 when the only transaction records, so pound cross rates against the mark up is tantamount to a full 1%, only trading.
Q: This is the inter-bank market, is not very unusual situation?
Answer: Yes, this means that everyone is watching the price of 3.00. When we understand the Bank of England will not be re-intervention, no one is willing to sell pounds.
Q: Do you think cross-trading opportunities offered by the exchange rate is better than the U.S. dollar deal?
Answer: Yes, because very few people will notice that cross rates. Less attention, with trading opportunities, the better.
Q: What is your trading style, contains a fundamental analysis and technical analysis, if I tell you, Ke savannah, we want you locked up in the room, you can only come from the fundamentals of market information and technical statistics chart to select a items to engage in trading, you will choose one?
A: This is equivalent to require diagnosis or medical doctors only treat the patient tables. In fact; both needs. However, if we must choose one, I think the fundamentals of information is important. In the 1970s, rely on technical analysis can make money, but at that time does not increase the market flooded with so-called technical breakthrough in the phenomenon of false. Today, however, is to invest in almost every technical analysis expert, but there may be many technical trading systems. I think this emphasis on technical change makes it difficult for traders engaged in trading.
Q: Let us turn to the stock market, do you think the stock market and other financial markets, in essence, any different?
A: The short-term stock market trends often bounce or correction. After the fall always goes up. Commodity markets, however, the trend is to the actual supply and demand of commodities to decide. If the market on the supply shortage, prices will show sustained upward trend. Q: If the volatility of stock index futures more intense still be able to use technical analysis to operate the
A: Perhaps. Mode of operation is usually a longer-term rally in stocks can often be captured pseudo-big-band, only stop-loss price range to be set a little too big.
