About 'xe forex exchange'|Foreign exchange rate calculator
For those who have followed the movements of currencies, its volatility is ce rtainly a major risk '" and with the magnitude, the loss can be enormous within a day. The best example will be AUD:USD pair, back in late 2007 or early 2008, majority of people are predicting AUD will break through USD very soon. Into second half of 2008, most people are expecting AUD will fall under $0.50 USD. The numbers itself explains how crazy the forex market can be. I have known many investors "jumping into last wagon", trying to predict the currency movements, but they have failed miserably, the volatility experienced today on currencies is really, only for brave hearts. "There is no requirement to take unnecessary risks when comes to investments " My Strategies I am very simple minded. One way or another, we all understand forex somehow, you will start paying attention to Forex you start planning for your next trip, or if you are importing or exporting, or simply buying something from overseas. I do not trade Forex, I do know many investor s s have made massive profit s or losses from Forex trading especially if you have bought USD and sold AUD in 2008, with leverage up to 100 times, investors can make massive profit s or massive losses beyond comprehension . , although I must say, majority of Forex providers have stop-loss functions to close out investors' position when the currency fluctuates against their way. One of my lunch time strategies is: Never take on risks that you do not know, and if I am leveraged 100 times, I will have to monitor the trading screen 24/7, no, I do not want a life like that. There are much simpler and in my view, safer ways to benefit from currency fluctuations: Simple Currency Hedging Strategies: Please let me share some of them with you: Lunch Time Currency Investment Strategies Opening up different currency accounts '" most of the banks, if not from regional banks, try larger especially international banks as they will often have foreign currency term deposits or even savings accounts or check cheque accounts . Multi-currency accounts '" Large banks like Citibank and HSBC also have multi-currency accounts where you can hold 4 four or more currencies in one account, which allows you to move the currency to one another just by clicking a button or through a phone call. Interest rates on these accounts vary greatly depending on the currency, choice of currencies also varies, the most common currencies available are · AUD · , EUR · , GBP · , USD · , JPY, and some even offer Chinese RMB, Hong Kong Dollars, Singapore Dollars and Swiss Franc. In th e i s e extremely volatile markets, s S ome investors hold those currencies which are controlled by the government such as Chinese RMB and most of the currencies used in the Middle East. My Strategies First, is finding a good source for information on exchange rates, and there are quite a few of them: I use is www.xe.com but other FX providers such as Easy Forex, GFT all provide live information. Then you have to work out what you are actually paying, banks do make a profit from foreign currencies transactions, this can be in the form of transaction fee, or making profit from spot rates. At moment, I have opened HSBC Multi-Currency Accounts '" which allows me to hold 5 currencies: AUD, USD, EUR, SGD, JPY and I am adding GBP and CAD as we speak '" this is a great way for me to add currencies whenever there is some movement. In 2009, one of my goals is to further diversify that and this includes adding Swiss Franc into my portfolio . Multi-Currency bank accounts fits in my "20 Minutes" trading strategy very well, I just check the latest currency rate and there is a good movement, usually up or down 1c or 2c which is quite considerable in Forex terms, I will then decide if I wish to transfer more or withdraw funds into another currency. |
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