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Fighting against low dollar
- Thread starter lojze
- Start date
Hedge your USD exposure with currency futures or spot FX with a FX broker such as FXCM.
Alternatively you could buy gold or silver as a less perfect hedge.
Alternatively you could buy gold or silver as a less perfect hedge.
Quote from lojze:
Hi, fellow non-american traders: What's the best fight against falling profits when dollar collapes against Euro as in this times?
Lojze
Currencies are traded on a spot basis (settlement 2 days after trade date). Traditionally FX (foreign exchange) trading was only done between banks, and it was not possible for Joe Bloggs to trade currencies with a 5 pip spread.
Now there are online FX brokers, one of which is FXCM (fxcm.com) that allow FX trading with small spreads.
Now there are online FX brokers, one of which is FXCM (fxcm.com) that allow FX trading with small spreads.
Quote from lojze:
Help me, what do you mean with "spot FX" and FXCM.
Lojze
Quote from m22au:
Currencies are traded on a spot basis (settlement 2 days after trade date). Traditionally FX (foreign exchange) trading was only done between banks, and it was not possible for Joe Bloggs to trade currencies with a 5 pip spread.
Now there are online FX brokers, one of which is FXCM (fxcm.com) that allow FX trading with small spreads.
Thank you m. But as the spreads are thin, what are the multiples for earnings/loses? Each point how much?
Lojze
I think you may be mistaking spreads for margin. Spreads are typically 5 to 7 pips for EUR/USD, CHF/USD, GBP/USD, AUD/USD if trading spot, but 2-5 if trading futures.
Online FX brokers offer 100:1 margin (or more). Overnight margin for currency futures is roughly 30:1 - check out the CME web site for more info such as contract specs and overnight margin requirements.
Online FX brokers offer 100:1 margin (or more). Overnight margin for currency futures is roughly 30:1 - check out the CME web site for more info such as contract specs and overnight margin requirements.
Quote from lojze:
Thank you m. But as the spreads are thin, what are the multiples for earnings/loses? Each point how much?
Lojze
Quote from lojze:
Thank you m. But as the spreads are thin, what are the multiples for earnings/loses? Each point how much?
Lojze
Don't worry about all that. Just buy the same amount of your currency (whatever it is) vs the $US as you have in your $US denominated account and you're hedged.