Kendara
Member
Cash: $ 3.50
Posts: 14
Joined: 14 Nov 2009
Location: Tokyo
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| technical shorts, etc |
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I am basically ignorant of forex trade, but I need to understand what the following sentence is saying. I think it is some kind of recommendation on forex trade (I'm not sure).
Furthermore, inflationary pressures also mean the RBI (India's central bank) should continue to back off from aggressive intervention on the currency, allowing the INR (rupee) to strengthen further. We maintain our technical USD shorts at 45.15 with a stop at 46.55.
The first sentence is OK, but I have no idea what the second sentence is saying. What is technical USD shorts? Does stop mean stop loss?
Can anyone help me please?
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Sat Jan 16, 2010 11:17 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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USD is the US Dollar, and "short" means they're selling it. Today on the spot market, $1.00 US = 45.53 Rupees. Stop is a stop-loss; if the dollar strengthens, as it did today, it buys more Rupees. The stop on a short is higher than the entry level. A strong domestic currency is deflationary, so they want the Ruppee to be strong against the dollar. Apparently they're selling the dollar either to influence its direction, or to make money off the move. "Technical" might mean that they're using proxies for the actual currencies, though that's just my guess. I don't know if there's an actual Dollar/Rupee currency pair they can trade.
This must be a hedge fund you're translating for. A sovereign wealth fund would never have a stop that tight. 
~Tim~
Eye Candy : Why Whimsy
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Wed Jan 20, 2010 2:56 am |
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C9Consulting
Full Member
Cash: $ 17.65
Posts: 88
Joined: 15 Jan 2010
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That was very cryptic. It seems a little like overkill. If they want us to invest in them, why would they want to turn us off to them with confusing language?? Doesn't make sense lol. Thanks for the post though. And the educational explanation, coaster.
Cloud 9 Financial
Company Blog
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Wed Jan 27, 2010 12:55 am |
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