Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Reply
 
Thread Tools Display Modes
  #1  
Old 07-11-2007, 11:09 AM
shipitkthx shipitkthx is offline
Senior Member
 
Join Date: Feb 2007
Location: Canada
Posts: 936
Default 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.
Reply With Quote
  #2  
Old 07-11-2007, 01:39 PM
CrushinFelt CrushinFelt is offline
Senior Member
 
Join Date: Aug 2006
Posts: 2,071
Default Re: Question regarding currency trading

hedge
Reply With Quote
  #3  
Old 07-11-2007, 02:58 PM
DcifrThs DcifrThs is offline
Senior Member
 
Join Date: Aug 2003
Location: Spewin them chips
Posts: 10,115
Default 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.

[/ QUOTE ]

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.
Reply With Quote
  #4  
Old 07-15-2007, 12:03 AM
Nomad84 Nomad84 is offline
Senior Member
 
Join Date: Mar 2005
Location: moving soon
Posts: 1,246
Default 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?
Reply With Quote
  #5  
Old 07-15-2007, 05:17 AM
DcifrThs DcifrThs is offline
Senior Member
 
Join Date: Aug 2003
Location: Spewin them chips
Posts: 10,115
Default 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?

[/ QUOTE ]

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
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 01:41 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.