*We booked a profit of 27 Pips. Even though the spread is from from closing we decided to take the profit and move back into cash. Of course if this spread narrows we will be leaving a lot on the table but we are happy with the gain from a low level risk trade.
We will be initiating 1/2 our position in a correlation trade of USD/SGD to USD/JPY. The spread is currently 500 Pips and could potentially get wider, if it does we will then have the opportunity to add to our position, hence reducing our costs. The spread should narrow over time as it has done during the past year. One could wait until the correlation completely narrows to the point that both pairs touch or one could take their profit at any time during the closure of the correlation. Please see the chart for more information.
We will be initiating 1/2 our position in a correlation trade of USD/SGD to USD/JPY. The spread is currently 500 Pips and could potentially get wider, if it does we will then have the opportunity to add to our position, hence reducing our costs. The spread should narrow over time as it has done during the past year. One could wait until the correlation completely narrows to the point that both pairs touch or one could take their profit at any time during the closure of the correlation. Please see the chart for more information.