[zdo]

Anyone up here on TL specializing in trading the higher interest paying pairs (for the interest) ??

big picture, methods and techniques stuff you can share ?? thx.

For example, I've had some good results using cycles with pairs long the AUS, NZD and also, for the last 15 months or so, the INR.
For INR, the spreads / transaction costs are abysimal...but interest payments are great and more than offset costs if hold for longer period.

Any pro's or specialist who can contribute some insights into playing the high rate countries?? Many thanks.

[SIUYA]

never really played it from the point of view of only interest rates, but I guy I knew about two years ago put together a great model from a portfolio point of view and traded the carry spread. According to him it worked best from a portfolio point of view as there are always the shocks that carry you out, and you need to diversify a bit, and take the longer term view on it.
Otherwise it something I have never really looked at, except from the point of view of understanding the big effect interest rates can have on such models.

[zdo]

lazy, sloppy entries, avg price ~54.28 (horizontal cursor line on (hard to see) attachment)
and a very ugly spread
but ka ching on the daily interest payments - for over a month now

[zdo]

hm… India…
tangentially related …
India Joins Asian Dollar Exclusion Zone -- Will Transact With Iran In Rupees - BlackListedNews.com

Governments Will Allow Much, Much Higher Gold Prices Soon! Here

[zdo]

... and out. (actually 80% out)

...mostly for moving funds to other opps right now... ie wouldn't be surprised to see USD go down even more in this pair for a couple more months. As I mentioned before, the daily interest in this trade far more than offsets additional transaction costs.

Long AUDUSD, AUDJPY, NZDUSD, and NZDJPY, etc have also been a good trades lately but the daily interest, while good, is not great like in short USDINR

...same questions from OP re methods,etc are still open... thanks

Have a great weekend all,

zdo

[Obsidian]

you may want to check try/jpy

[zdo]

Originally Posted by Obsidian »

you may want to check try/jpy

Thanks. I have looked at them … for me with TRYJPY in comparison to AUDJPY, etc
they are all pretty correlated directionally in price…
so more looking for sweet spots in the planned holding periods. ie it would be better for holding period in TRYJPY to be longer in relation to AUDJPY's, etc … full point difference in the spreads but (only , nothing to sneeze at) ~1.75 diff in the rates.

Wonder why the INR isn’t more liquid / spread is so high?

[Obsidian]

I know it changes during market hours but 7.5-20 pips...not that bad for such currencies