What are the necessary steps to trade gold futures in conjunction with a currency future?
In this episode of Closing the Gap: Futures Edition, Pete, Tom and Tony walk through how to identify pairs trading opportunities in Gold (/GC) and another major currency futures, such as the Australian Dollar (/6A).
Both Gold and Aussie $ (compared to the dollar) have fallen since the start of the year.
With this information in mind, coupled with their implied volatility and notional value, Pete walks through a pairs trade setup that allows traders to extend duration and diversify a portfolio in a non-traditional way.
Tune in for all of the details!