On Sep 21, 3:28 pm, Declan Murphy <declan_mur...@hotmail.com> wrote:
> On Sep 21, 10:48 am, "Marvel" <Mar...@helpcarl.com> wrote:
[...]
> > I would guess because not  many frequenters here know much about the
> > yen-carry trade.
> > I for one knew little to none,  it was often tempting to try but I never
> > did.
>
> I earn in yen and spend in yen. Don't follow the $AUD/Yen or Euro/Yen
> exchange rates at all.

Makes sense.
But I guess the temptation lies in the fact that Japanese savings
account give you interest close to 0%. So buying Australian or NZ
dollar becomes tempting. Even if the exchange rate doesn't move a lot
in the right direction, you could still make money.  Yeah, I know, the
problem is when it moves in "wrong" direction, but hey, we're talking
about pachinko addicts here.

> > And what about Mrs. Watanabe!
> > I know people make a living at it but had no idea so many Japanese
> > housewives were sneaking behind their husbands backs.
>
> I'd seen foreign currency denominated accounts when visiting the banks
> but never paid much attention to them. But margin trading is a lot
> riskier than such simple accounts. We are talking about short selling
> etc, often on credit, risking (potentially) the entire savings of a
> family.

True, but there are fairly simple ways of limiting losses.

Rafael Caetano