Ok, the take profit level was triggered just a few moment ago, the spot rate is now at 1.3545.
So you see, it’s good risk management to establish a take profit level when your trade is ITM – in the money. So if the money continues moving in your direction, you continue to make, but if the market begins to backtrack, then, you would be taken out at your take profit level.
So for this Short EURUSD trade, we locked in a trading profit of 58bps.
The JPY has weakened nicely pass the 103.00 level.
I believe there’s probably alittle more room to move upwards, so I am placing a take profit level at 103.00 and continue to carry the spot position.
If the JPY continues to move southwards, I may consider writing options as a strategy of placing a take profit level and at the same time earn some premiums. I will come back to all of you to explain this strategy.
Now that the EURUSD has moved significantly lower and I believe there’s probably alittle more room to move downwards, I will hold the spot position.
However, it’s important to manage the risk dynamics, so I am placing a take profit level at 1.3540.
I am born in the Year of the Tiger.
The Panthenon Investment Group 