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A leveraged fx position and an interest bearing savings account have very different risk profiles and it seems silly to compare the two.
by minimax 11y ago
A leveraged fx position and an interest bearing savings account have very different risk profiles and it seems silly to compare the two.
- chollida1 11y agoI never oncee compared them:) I said that the large spread between the dollar and Yen benefits hedge funds. And I also said that low interest rates makes it harder for the average person to save. I stand by both those comments. I don't think you need to be rude or to try and twist my words, just to try and refute a point no one was making;)
- minimax 11y agoThe rate difference only benefits hedge funds if USDJPY also plays along. That trade has fx risk and you're making it sound like a sure thing. If USDJPY goes the wrong way, the trade loses money and the average joe whose savings account is roughly flat looks pretty smart (in relative terms).
- deleted 11y ago[deleted]