New answers tagged fx
Granularity Display granularity: You should choose granularity based on screen size constraint. Most screens support about 100 pixels per inch and can display 2000 discrete pixels in the horizontal axis. Let's say you store 2000 minutes of data. It will be impossible for a regular monitor screen to resolve the difference if you displayed them as points in ...
Actually for the forward rates you would need to subscribe to a financial datafeed like Bloomberg, Thomson Reuters Datastream or Interactive Data. For the current forward rates you could look it up at here http://www.fxstreet.com/rates-charts/forward-rates/?id=usd%2fjpy, the data are provided by Interactive Data.
Position here is the residual amount of one or other currency at the end: You gave us: Time | Amount | Rate | t1 100 1.2636 t2 -1000 1.2599 t3 200 1.1612 Assuming the Amount is amount paid in USD, and the rate is EUR/USD: Time | Amount | Rate | EUR balance | USD balance t0 0 0 t1 ...
If you're asking if you'd get your money back when spreads subside, you are basically asking [or hoping] whether the position will move in your direction. The short answer is probably yes (this pair has been in an uptrend for years), I would bet on up rather than down. However, this might not occur quickly enough, i.e. before you have to liquidate or lose ...
It can be undone if you negotiate with the broker. There may or may not be a cost depending on how the broker manages their RUB book. That depends on (a) if they make their own prices, or (b) if they have a price provider whether (i) they cover their client positions immediately, or (ii) they build small client positions and cover later. Well, in this case ...
The trade cannot be made undone, you can at best sue your broker for not correctly informing you about the "2,0/2.0" notation.
Position means inventory. See Survey of market making strategies and research What you're puzzling about is what would be the value of your inventory in some risk (PnL) currency other than the currency you actually have. That's why you'd have rates from one currency to another. But the current value of your inventory expressed in terms of some other ...
You aren't including how much of your base currency you have in your portfolio. Once you do that your position can be written as $X$ USD and $Y$ EUR. Beyond doing much of the work for your P&L computation, this is also useful for monitoring your risk to FX changes.
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