Watch out for Wednesday's leading contestant in the currency trading portion of the contest, as he has rapidly ascended the ranks thanks to a heavily leveraged GBP/JPY position. In fact, the top three contestants on Wednesday all reached the top by buying the volatile currency pair. However, with these contestants putting all of their eggs in one basket, any sharp turn in GBP/JPY could knock them out.
As we mentioned yesterday, Tuesday's third place contestant looked to be a threat to the other leaders, and indeed he was. In fact, he became Wednesday’s first place contestant, as he ended the day with a portfolio balance of $146,612.23 with the help of his very profitable long GBP/JPY position. This has proven to be a fantastic play for contestant number 1, as he entered his long position on Friday afternoon while GBP/JPY consolidated near 204.50. As of yesterday's close, his long GBP/JPY position was still open, so it'll be interesting to see what sort of profit target contestant 1 has in mind, and if he will continue to play it cool and patiently hold on to the pair. More importantly: will it keep him in the number 1 spot?
Meanwhile, contestant number 2 is new to the top three as he ended Wednesday with a portfolio balance of $143,878.79. Contestant number 2 started trading on the first day of the currency portion of the contest by utilizing a short-term long position in EUR/USD. However, once he got a taste of GBP/JPY, there was no going back. Indeed, his first GBP/JPY long entry left him with a profit of over $19,000, and while a few small, shorter-term positions in the pair didn’t go his way, contestant number 2 went in big last Friday. Like contestant number 1, contestant number 2 entered a highly leveraged long GBP/JPY position, and as of yesterday's close, he was still holding on to the pair.
Finally, contestant number 3 is new to the leaderboard as well, and (surprise, surprise!) he closed out Wednesday with a balance of $142,706.56 on the back of a similar long GBP/JPY position to that of the other leaders. Contestant number 3 has taken a clear liking to the pair in these early days of the currency trading portion of the contest. And why not? He’s done nothing but rake in profits on the pair!
However, as mentioned above, all of the top three leaders were essentially holding the same position as of yesterday’s close. As a result, if GBP/JPY moves out of their favor, the door may be left wide open for other contestants to take the lead.
Congratulations to our top three traders and good luck!
Terri Belkas, Currency Analyst, DailyFX.com
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