Daily market Views

[ritwijmahant]

thsi is the euro channel. sold off yesterday at high.. now looking to sell again.. target 1.2750 if stays below it.. s/l 1.2900+

cheers

 

[ritwijmahant]

euro nearing my s/l of 1.2905

GBP held off low of teh morning range.. at 1.5500.. and has shot off 120 points fromthere to teh top end of teh morning range of 1.5625.. small profit booked there.. no trade at teh moment

 

[vicky_ag]

euro nearing my s/l of 1.2905

GBP held off low of teh morning range.. at 1.5500.. and has shot off 120 points fromthere to teh top end of teh morning range of 1.5625.. small profit booked there.. no trade at teh moment

Hi, you earlier said that you were trading for a bank. Which one would that be? Cause from what I know banks are more into selling and managing positional deals with an eye on the MTM calculations. Intra-day trading is not their cup of tea. Or is that you are doing the trades on your own account?

 

[ritwijmahant]

Hi Vicky..

banks have dealing room which will trade in currencies just like anyone else.. banks will eaitehr buy or sell currencies on behalf of clients.. liek exporters or importers.. or they will also take propriatory positions.. and trade in any of teh currencies in interbank OTC market.. where counter party is any bank in teh workld for global currencuies.. and any bank in Idnia for USd/IN..

but of copurse anyone who trades.. banks will eitehr take profits or cut their losses in intraday trading as well..

hope this answers ur query

 

[ritwijmahant]

:fatigue:stopped out on euro.. cutr my USD/INr as well.. .

in retrospect.. long position for Nifty yesterday was perfect.. but with a change of heart in teh morning got out at cost.. it achieved its target of 5485 .. but no positions there..

at least mumbai bank holiday tomorrow.. thank god for small mercies.. at least wont make any more losses :clap:

 

[vicky_ag]

Hi Vicky..

banks have dealing room which will trade in currencies just like anyone else.. banks will eaitehr buy or sell currencies on behalf of clients.. liek exporters or importers.. or they will also take propriatory positions.. and trade in any of teh currencies in interbank OTC market.. where counter party is any bank in teh workld for global currencuies.. and any bank in Idnia for USd/IN..

but of copurse anyone who trades.. banks will eitehr take profits or cut their losses in intraday trading as well..

hope this answers ur query

They do have dealing rooms, act as brokers and take properiatory trades. and yes, Cut losses/book profits at a daily basis. All these go to maintaining a healthy MTM on their books.

My query was on your trades and analysis which are posted daily. Ranges and targets on a daily basis is not something banks look at.

 

[ritwijmahant]

u see. banks have propriataty tarders.. which i m.. we will have two types of positions..

one..bank will have a strategic position.. which is long term in nature.. and MTM is done daily .. and is held over a period of time..

but that dosnet mean as a trader i will ignore the intraday trading opportunities. if I have a strategic position .. say long.. but i feel market will see an intraday dip once before coming back again.. i can always sell during the day.. and buy back again before market closes.. thus keeping my strategic position intact.. but at the same time earning on the intraday volatility and hence improving my holding cost for strategic position..

no bank stops its traders from taking intraday positions.. so your information is though not incorrect .. is incomplete... bank can have a strategic positions.. but in current market.. with extreme volatility if one dosent have a long term, view.. then Bank may not hold a strategic position.. but will try to play only on intraday volatility..

any other query.. pls shoot

cheers

 

[vicky_ag]

u see. banks have propriataty tarders.. which i m.. we will have two types of positions..

one..bank will have a strategic position.. which is long term in nature.. and MTM is done daily .. and is held over a period of time..

but that dosnet mean as a trader i will ignore the intraday trading opportunities. if I have a strategic position .. say long.. but i feel market will see an intraday dip once before coming back again.. i can always sell during the day.. and buy back again before market closes.. thus keeping my strategic position intact.. but at the same time earning on the intraday volatility and hence improving my holding cost for strategic position..

no bank stops its traders from taking intraday positions.. so your information is though not incorrect .. is incomplete... bank can have a strategic positions.. but in current market.. with extreme volatility if one dosent have a long term, view.. then Bank may not hold a strategic position.. but will try to play only on intraday volatility..

any other query.. pls shoot

cheers

Now this confuses me more. If there is a long term view of buying a currency and there is a dip. Will it not be better to open a sell position as a hedge along with the long term buy ? Selling and opening the position again poses an unecessary risk. Plus not to mention there is also an issue of selling a retrace in a bullish being a bad idea.

 

[ritwijmahant]

vicky.. u r assuming bank will always have a long term positions.. as i mentioned.. if a trader dosent have a long term view.. he will not hold any long term positions.. but maty tarde intraday only.. or for a day or two..

 

[ritwijmahant]

20 Aug 2010

Euro crashed as per expecetd after another failure to breach teh upper band of the channel. but after stopping me out.. and almost achieved the target of 1.2750.. expect the range to stay as 1.2780-1.2850 for the day.

GBp./. expect same rabnge of 1.5490-1.5625 to continue.

JPy also same range of 85.00/85.70 to play..

Rupee.. expect range of 46.50-70 in OTC markets..

Equities.. BSE.. wud like to watch for daily close today.. BSE as long as stays below 18500.. i m all gung ho for a correction.. shorted Nifty.. staying short.. will cut only if closes above my channel in BSE.. chart to follow..

TGIF.. :clap: