Picking up Forex Trading

I have been long the Australian Dollar since March 22 when I bought it at $0.9205.  Yesterday, I added a short Euro position at $1.3483.  With the Australian Dollar it has been fun to see interest added to my account every late afternoon.  I can now say that I've been on the long side of a carry trade.

Although the daily P/L on these positions can be significant due to the 1:100 leverage granted in Forex accounts.  I have put only 2.5% of my portfolio into the separate Forex account.  I assume if I mess up badly and by buying power in this account goes to zero my Forex positions will be liquidated.  Thus, worst -case I get a great learning experience for 2.5% of the portfolio.

I think the Forex account has been a good distraction to me during this huge rally up.  During huge rallies like this I feel pressure to get more long, as my delta exposure gets lower every day due to the nature of being short puts.  It's also important for me to keep my trading activity relatively low to avoid running up a large commissions bill.  Forex trades are commission-free as my broker makes its commissions as part of the spread.