Today was to have been an FX trade for the Australian to US dollar (AUDUSD pair). Seeing as I do not have a forex account I looked for an alternative in the ETF world. FAX is an Australian dollar trust which closely follows the AUD so I figured it would be my best bet.
Seeing as there were no short funds (reverse correlation) I would have to short the ETF in order to take advantage of the expected pullback. The stop was about $1 higher than entry and the target was over $3.50 lower, a nice risk/return ratio... except for one hitch.
The order was rejected at the broker.
I did wonder as volume was not huge on this fund whether I would be able to short it in the first place, I guess not. As a result I am sitting on the side lines out of the trade. Too bad I did all the math to get into it.
I fully expected to not be able to take part in all trades through this newsletter service, so this is the first. I will be able to take the long side at least as there will be no trouble buying this fund at such time as appropriate for a long position.
Oh well. I am curious to see if this trade works out anyway.
Jeff.
Questrade, My direct access discount broker.
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