DislikedEvery body likes the Gbp/Jpy for its fat swap. One popular hedging strategy for this pair is to buy the pair in an interest bearing account and sell it in an interest free account, also called the 100% hedge. Like always feared and we are witnessing these days, the very high swing in the naked Gbp/Jpy can blow off any one of the accounts. To sedate this hyper pair, it would be worthwhile to consider selling 1.8 Gbp/Usd along with it in the interest bearing account and vice versa in the interest free account. This can considerably reduce the swings in both the accounts, while also adding to the total swap. Any thoughts on this would be appreciated.Ignored
This way you are out of the trade evey day and not exposed to the market volatility and only in long enough to take advantage of the swap.