AUS dollar and US dollar.....

[SOULFLY3]

I dont know if this is true 100% but thought id throw it out there..
last or 2 years ago when the Aus dollar climbed to $1 US, a mate of a mate bought $100,000 of i dont know either Aus or US and then when our Aussie dollar crashed back to around 50cent US he sold doubling his money....


can this be done if so how does it work? how can 1 do this? etc etc or is this just crap?


thanks

 

[ianvestor]

It's certainly possible. If he made money on that move then he would have bought $100,000 USD with his $100,000 AUD, then when the rate hit 50c, he could have swapped it back for $200,000 AUD.

Have a look at http://www.fxtrade.com. You can open a demo account with $50,000 virtual money to practice with.

 

[james_w]

I dont know if this is true 100% but thought id throw it out there..
last or 2 years ago when the Aus dollar climbed to $1 US, a mate of a mate bought $100,000 of i dont know either Aus or US and then when our Aussie dollar crashed back to around 50cent US he sold doubling his money....


can this be done if so how does it work? how can 1 do this? etc etc or is this just crap?


thanks

fx forex currency trading yeah it can be done but very risky he would of sold so when it dropped back to aud .50 doubling he's money rarely happens twice

lookup fxcm and have a play with the demo if interested

 

[Meisterin]

You can do this if you have foreign currency bank account with AUS bank, ie with HSBC, and transfer from one account to another via internet. For example:

1. You open US Dollar and AUS dollar account with any bank

2. Transfer money from one account to another as the money is exchanged at the specified rate on the day.

There will be approximately 2% exchange commission each way.

 

[Timeshift]

I dont know if this is true 100% but thought id throw it out there..
last or 2 years ago when the Aus dollar climbed to $1 US, a mate of a mate bought $100,000 of i dont know either Aus or US and then when our Aussie dollar crashed back to around 50cent US he sold doubling his money....


can this be done if so how does it work? how can 1 do this? etc etc or is this just crap?


thanks

Sure it can be done, and it sounds so easy trouble is that it doesn't always work out that way when trading, you can also suffer a loss when trading currencies, I think most brokers allow higher leverage when trading currencies therefore you can also loose more than your initial investment.

Ive traded Stocks here and in the US, Commodities and Currencies futures for me personally currencies where one of the more difficult to trade but other people might find them easier.

How can you do this, there are several ways firstly don't deal with a bank that would be very costly (commissions and spreads) and not suited for trading also avoid retail brokers / market makers / bucket shops were no real trade is taken you trade against the broker.

The better options are to deal with a ECN broker or Interbank broker the spreads are tighter, but you have to pay commissions. When you make a trade they pass it through to interbank, so the counterparty is a real trader.

Another good option is to find a futures broker and buy or sell a AUD/USD futures contract each contract is 100k USD so if the Aussie dollar is at .90 cents the contract value is 90,000 USD, future contracts unlike spot forex have a exchange in which they are traded from.

Its probably better that you find out alot more information about risks and whats involved with trading currencies first before diving in visit Aussie stock Forums they have currencies forum there ask some questions.

 

[Sunfish]

Mine wasn't on Fx but on futures.

I woke up in the middle of the night and remembered there was a cricket game on Fox. ALWAYS when I get outa bed I check the price of gold and I saw it had a plunge in price but was recovering but silver was still low. Now it is normal for silver to lag gold so I bought a single silver contract.

Before going to bed I closed the position sixteen hundred up. So yes! it can be done.

Note: I haven't given up my day job relying on doing this regularly. I am however long a gold contract which I opened an hour ago. (Don't do this often, guess it's why I'm talking clap at this time of night) and the POG is drifting sideways. I'm a few hundred up ATM and I will sell before I go to bed and my bottle of red is getting light so that may be soon but I'd love it to have a bit of a run before I do. Nothing beats the feeling of an easy grand (or two!)

Win some. Loose some!

 

[willair]

Mine wasn't on Fx but on futures.

I woke up in the middle of the night and remembered there was a cricket game on Fox. ALWAYS when I get outa bed I check the price of gold and I saw it had a plunge in price but was recovering but silver was still low. Now it is normal for silver to lag gold so I bought a single silver contract.

Before going to bed I closed the position sixteen hundred up. So yes! it can be done.

Note: I haven't given up my day job relying on doing this regularly. I am however long a gold contract which I opened an hour ago. (Don't do this often) and the POG is drifting sideways. I'm a few hundred up ATM and I will sell before I go to bed and my bottle of red is getting light so that may be soon but I'd love it to have a bit of a run before I do. Nothing beats the feeling of an easy grand (or two!)

Win some. Loose some!

Sounds like the local front bar drinkers at my local hotel,they all think Gold will break 1500us$$ by March next year..wilair..imho..

 

[Sunfish]

Sounds like the local front bar drinkers at my local hotel,they all think Gold will break 1500us$$ by March next year..wilair..imho..

Wouldn't bet against it. What will happen in A$s is a different matter though.

You must drink in a high class pub. My mates couldn't care less.

I'm off to bed. Closed my position $118 up after being $600 up a few minutes ago. Such is life!

 

[shuggy]

I dont know if this is true 100% but thought id throw it out there..
last or 2 years ago when the Aus dollar climbed to $1 US, a mate of a mate bought $100,000 of i dont know either Aus or US and then when our Aussie dollar crashed back to around 50cent US he sold doubling his money....


can this be done if so how does it work? how can 1 do this? etc etc or is this just crap?


thanks

You can open a dual currency acc with some banks (HSBC do it) and buy the US$ if you thinks it's close to peaking. Or else internet transfer your money to an o'seas bank acc in a country that's currency is pegged to the US$.
Do this when you think it's high and sell when it's low
OzForex send me daily updates and this was from yesterday.
I bolded red, it's something i need to consider when i have to transfer $x to a US$ pegged account in 10mths time... transfer it now or hold out longer and hope it goes higher within 6-12mths time I'm not sure it will get to 97-98 cents before 10mths time but i'd like it.

:: Australian Dollar: Average weekly wages increased by 5.2% in August and 0.9% for the year to date, down from 6.1% the previous month and 1.2% for the year to July. The news was enough to tip the AUD/USD below intraday technical support at 0.9270 to a low of 0.9220 in Asia yesterday. The Aussie dollar followed the Euro lower in early trade to revisit the 0.9130 level before bouncing back in late U.S trade following some relatively upbeat North American economic data. This morning sees the AUD open trade back near the 92 cent handle seemingly contained within a 89 to 94 cent range for the time being with some sections of the market losing faith in the parity story.

 

[SOULFLY3]

hrmmmm interesting would anyone do it but??

if it wasnt for the transaction fees it would be similar to like a travelex card... ?

 

[j_p]

Transaction fees are VERY low, the cost is just the difference between the buy and the sell price - the "spread"
Spreads can go as low as about 1/100th of a cent from memory.

 

[rodimus]

hi all,
most of the F broker programs offer high leverage and allows you to trade for just the spread, which is quite small.

But, does anyone know a broker who allows us to buy FX withouht leverage?

 

[ianvestor]

does anyone know a broker who allows us to buy FX withouht leverage?

The leverage is optional (at fxtrade.com at least). Just go to your options and choose 1:1.

However as others have suggested, non-leverage trading is as simple as opening a foreign bank account.