Originally Posted by SnerpGoodWord
Well, you're talking about buying high rates and selling low rates.
I'm talking about taking rates into consideration because the rates, in essence, change the real price of a currency over time. If you trade for example AUD/JPY, the longer you hold the position, the higher the real price of the Australian dollars you bought/sold will be in yens relative to the nominal quote price. This is to be taken into consideration in the process of averaging down longs and averaging up shorts. The point is not to hunt for yield. The nominal yield is an illusion. The point is to not neglect the impact of the difference in rates.