An excellent reference and guide to spread an initial leverage position using the AUD Futures market and combining Spot AUDUSD to average upon market confirmation and validation. Futures would be settled first ahead of the spot FX position.
The technical spinning top was the first indicator that a price reversal was in the making. This signal was used to time EFP's and conversion of PHP into Aussie Dollar since the USD is likewise in a weaker state. A strategy well worth applied for institutional and high net worth investors.
Reference: Sequence of Trades in Australian Dollar
Futures & Spot Market in FX
With proper due diligence, leveraging in FX could offset the exchange rate differential between the PHP conversion into AUD while reconverting it back to USD when the DXY gains ground will have a net effect on the balance sheet. A complex strategy but well worth taking for those who may have the knowledge and access to the interbank market.
ReplyDeleteOccasionally the futures market can provide signals not necessarily seen in other markets. So it is just a matter of searching and looking for clear signal indicators where a potential market would develop such as the #AUSSIE Dollar.