Question regarding currency trading
 

I'm a noob when it comes to currency trading although I've been able to take advantage of the CAD/USA market on a small scale for the past few months. By small scale I'm referring to simply what funds I keep my bankroll in. I live very close to the Niagara Falls border and have family in the United States so I tend to make most of my purchases in the US. I have the ability through multiple bank accounts to keep my bankroll in either CAD, USD or a mixture of both. For most of 2007 I've been keeping all that I can in CAD accounts. This has been pretty profitable considering the huge drop of the USD vs. CAD so far. Looking at long term trends tho I am starting to wonder how much lower it can go. My recent check on the rate puts the market at around 1.0575. Can anyone with experience in these markets give me any tips on how low its forecasted to go? At what point should I start looking to keep my funds in USD again? Like i said this is really small scale but any advice would be appreciated.

Re: Question regarding currency trading
 

hedge

Re: Question regarding currency trading
 

[ QUOTE ]
I'm a noob when it comes to currency trading although I've been able to take advantage of the CAD/USA market on a small scale for the past few months. By small scale I'm referring to simply what funds I keep my bankroll in. I live very close to the Niagara Falls border and have family in the United States so I tend to make most of my purchases in the US. I have the ability through multiple bank accounts to keep my bankroll in either CAD, USD or a mixture of both. For most of 2007 I've been keeping all that I can in CAD accounts. This has been pretty profitable considering the huge drop of the USD vs. CAD so far. Looking at long term trends tho I am starting to wonder how much lower it can go. My recent check on the rate puts the market at around 1.0575. Can anyone with experience in these markets give me any tips on how low its forecasted to go? At what point should I start looking to keep my funds in USD again? Like i said this is really small scale but any advice would be appreciated.

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keep the % of purchases you make in the US in USD and the % of purchases you make in CA in CAD. you want to invest in the denomination that you think you'll be living in and hedge the rest of your investments back to that choice.

Barron

EDIT: the goal is simply NOT to be exposed to the variability in the exchange rates that dictate your life/future.

Re: Question regarding currency trading
 

Barron, it sounds like he has the option of purchasing in the US or Canada as necessary. Would prices on either side of the border react quickly to currency changes? I suspect not, so he may be able to take advantage of his purchasing options and make active bets on the currency fluctuations rather than just using it as a hedge. He can then adjust spending habits to spend whichever currency is more advantageous to him at that time. What are your thoughts?

Re: Question regarding currency trading
 

[ QUOTE ]
Barron, it sounds like he has the option of purchasing in the US or Canada as necessary. Would prices on either side of the border react quickly to currency changes? I suspect not, so he may be able to take advantage of his purchasing options and make active bets on the currency fluctuations rather than just using it as a hedge. He can then adjust spending habits to spend whichever currency is more advantageous to him at that time. What are your thoughts?

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well he could certainly do that. i was thinking defensive rather than offensive.

your way would definitely be profitable and i don't think he would have much to lose if he keeps lets say only 50% of anything "hedged" so to speak (in USD vs. in CAD)

good thought nomad, since that gives OP yet another way to maximize his purchasing power [common sense stuff all told]

Barron