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