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Taking Profits on My Short Position in the AUD/USD

I have taken profits on my short position in the AUD/USD pair--a nice 320% profit in approximately 24 days. While I expect there could be some more downside in the future, I expect there to be a bounce when there has been this big of a move in such a short period of time. Moreover, unlike the Euro short (see posts I, II, III, & IV), the AUD short costs money on the carry (meaning that due to the interest rate differential, there are actually carrying costs for holding a long position in the US Dollar and a short position in the Australian Dollar). This is the opposite for the Euro, where you actually get paid to hold the trade on the overnight interest differential.

 
Keep in mind that there are substantial risks with currency trading. In the same way I can profit substantially, as I just did, trades can also go against you. It is important to always keep appropriate stop losses in place to help mitigate and define your risk!
 
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Please note that currency trading can involve a high degree of leverage and risk. You could lose all of your capital or even be subject to capital calls. These posts are for informational purposes only and are not intended to be a direct recommendation of particular investments or strategies.
Written By: Joshua Ungerecht
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AUD, Australian Dollar, Currencies, Currencies, Euro, US Dollar, Forex Trading, Currency Trading, Euro, Forex Trading, US Dollar