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Old 08-12-2007, 08:18 PM
MrMore MrMore is offline
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Join Date: Mar 2007
Posts: 78
Default Re: How do I bet on the yen vs. USD?

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FXCM has been the largest retail platform in FX for a while, but they got dinged in the Refco collapse so I don't know what impact that's had. That said, you need the JPY to appreciate over 10% in the next several years just to break even, because your IR differential costs vs. the USD are about 5% per year (i.e. it costs you 5% per year to carry the position).

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That's what I wanted to know.

But, then, while I have you, let's take the numbers out of it and phrase it like this:

I believe the yen is significantly undervalued, re the rest of the world, and want to bet that this changes. Or phrase it like this: I think the world is heading toward very tough economic times, and that Japan is best positioned to suffer the least.

Given that as my opinion, how do I bet on it?
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