“The future of FX!”
Come back in 10 years, and my guess is USDCNH will be one of the most
popularly traded FX pairs, by most traders in the world … I’m adding it this
week to our 20 Day Range MA charts for gold, silver, & the SP500. Directly
below this week’s charts.
click on any chart to enlarge
This pair trades inverted, so divide the quoted rate into 100,000 and you’ll
have the dollar amount per 1 PIP. With Friday’s close of 6.7294 [USDCNH
trades 4 decimals], ± 1 PIP = approximately $1.49 per 1 lot. The ranges here
are good, although these last weeks they’ve come down a few PIPS, but
generally are usually around 200 PIPS or higher. What I don’t like about
this pair, is that sometimes the spread can be erratic … and nothing says
erratic better than Turnkey & their merry band of scumbag LP banks, who
jack the spread around on occasion.
of the risk you bite off on a trade, at about $1.50 per PIP per 1 lot, you have
that flexibility here … margins at offshore brokerage houses vary, cuz some
places treat USDCNH as an EM [emerging market] FX pair and some don’t.
In any event, no matter where you go, it won’t be lower than 50X in terms
of leverage.
Right now, I’m trying to get Turnkey to talk to their LP’s and see if the
bid/offer spread can be lowered, cuz at other houses it’s much better than
Turnkey … while it’s not horrible or a “deal killer”, I’d rather trade it with
a lower spread. Over time, it can be a lot of money that is saved. We’ll see
how that turns out, but I’m not very hopeful they’ll do anything … why start
now?
Onto the week ahead … until tomorrow mi amigos … Onward & Upward!!
Have a great rest of your weekend everybody!
-vegas
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