Best way to short Yen / JGBs?
Hi all,
Am interested to hear any of your thoughts on the most effective way to:
1) Short the Yen
2) Short Japanese government bonds
For reference I'm a small-time investor just looking to invest a few hundred $$s.
Thanks
Depends on where you are and what trading platform you use. In the US, Interactive Brokers is the most common one. IB does FX, albeit poorly, as far as I know. IB also offers access to the JGB futures, which is the most basic, direct way for a retail investors to get short JGBs.
If you only have a few hundred bucks I'd suggest putting it in a savings account or mutual fund instead.
Thanks Martinghoul. Any thoughts on ETFs or buying puts on JGBs? Is this feasible? For reference I am using Merrill Edge and this is my first foray into trading. I've done my due diligence on the rationale behind the trade but I'm unsure as to the most effective execution.
And thanks for the great advice mrb87, this is money I am looking to use to practice trading.
Dude, there's no fucking point playing the rates market with less than $50k, nevermind $500.
Hardly true, the pros will take his money however big or small if he lays it out there. go hit that bid...
You can buy puts on JGB futures, but a) liquidity isn't uber fantastic; b) these options ain't cheap; and c) you're gonna either need a move relatively soon or you're going to have to roll them.
Finally, I am not at all familiar with Merrill Edge, so I can't say whether it supports all these products.
Thanks man.
mrb, why is there no point in playing with the $500 if I can replicate trades using ETFs or other products accessible to retail investors like myself? Are the fees prohibitively high for this small amount of money? Like I said I'm new to the game so any explanation is appreciated. This is a trade I'd like to place and hold for the longer term.
Yes, the fees will eat you alive and unlevered returns playing the rates market are too low. That combination will make this endeavour a waste of money and likely time (i.e. You won't really learn anything).
I'm not familiar with Merrill Edge and I don't want to put words in other peoples mouths, but yeah, chances are you are going to get killed by commissions.
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