US dollar is killing me. How to fight back

[captZEEbo]

Can someone please explain how to either: open (relatively safe) banks in foreign currencies or short the dollar. Everyone says to do these things, but I've never seen a post that helps figure this out.

[DcifrThs]

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Can someone please explain how to either: open (relatively safe) banks in foreign currencies or short the dollar. Everyone says to do these things, but I've never seen a post that helps figure this out.

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step 1: open a brokerage account (interactive brokers.com)

step 2: figure out your dollar exposure that you want hedged (i.1. $125,000 you want to hedge against GBP)

step 3: work out how much you have to purchase to get hedged. for instance, if a 10% drop in the dollar costs you $12.5k then you should for instance purcfhase 1 contract where a 10% move would also expose you to $12.5k. basically a $125k notional value. at IB, via CME you can get a 62500 GBP (it is quoted as GBP/USD so you make money if USD falls and lose if it rises). this is about a $125k USD exposure. the margin is probably about 10% or something.

step 4: choose your time frame. if you want to get the longest, i see one BPH9 which goes to march 2009.

hope this helps,
Barron

[scott1]

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No, the most amazing part is how someone gets paid $33 million in one year for being a model.

Unless she's got a side gig doing Buffett and Gates.


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You might get 30 Million for pictures of that threesome! [img]/images/graemlins/smile.gif[/img]

Jimbo

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http://buzznet-00.vo.llnwd.net/media/jj1...birthday-04.jpg

Comments on some blog say this is Gisele walking with her sister. If so, I think it's safe to say they are fraternal.

[lozen]

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Like many Canadians the US dollar is killing. Besides having a fair amount of US cash and investemnts my $ per hour playing poker is also getting slapped. Not to mention my day job is getting crushed by cheap US imports.
What is the best investment in the US to take advantage of this. I guess any manufacture that relies on exports but I have to think that there is very few examples of this. I know I am missing the boat somewhere.

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Surely you want to be keeping your invesments out of the US if the dollar is tanking?

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I see the CDN $ at a peak. Great time to buy as our dollar will have to come back to reality I think. But who thought it would get this high [img]/images/graemlins/smile.gif[/img]

[gonebroke2]

Where is the USD rally everyone is banking on? In the meantime, the canadian dollar is near 1.08 and gold is nearing all time nominal highs. Buy the break outs.

[Jimbo]

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Where is the USD rally everyone is banking on? In the meantime, the canadian dollar is near 1.08 and gold is nearing all time nominal highs. Buy the break outs.

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Who wants/needs a large rally in the dollar? As long as inflation stays in check (which it has so far) that would be killing the golden goose, unless I suppose you were a bear.

Jimbo

[ArturiusX]

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Where is the USD rally everyone is banking on?

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The moment when everyone settles into the prospect of a bear market, the bull market will re-emerge.

[lozen]

CDN crosses another thrshhold $1.10