FX "investing" when short

[Blacky]

I am firmly convinced that the AUD against the USD is due for some devaluation. However, I believe this will be a slow, gradual decline - maybe over 12+months.

Is there anyway to go "short" on the USD, for a long term "investment".
I understand that trading FX is a high risk and when you are leveraged 100/1 all of that multiplies.
So short of holding USD cash is there anyway to "short" the AUD, without exposing myself to massive potential losses.

In other words - can I have my cake and eat it?

Blacky

 

[charttv]

might be worth a look taking a long dated put/call or cost up the transaction via a CFD with ultra-wide stops if that's your thing.

I do know someone who did very well out of converting their USD holdings to AUD when it rallied hard in the noughties. No need to set stops, worry about time decay, margin calls, getting stopped out which kept them in the trade and riding the trend all the way to the top.

 

[Macca]

The simplest way is to allocate the amount of money you wish to invest, let's say $100,000, you put most of the money into an at call account paying interest.

You use $1000 as a deposit on a short of USDAUD, you would probably put $10k into your trading account to cover the news spikes (NFP etc) and then let it run.

You must monitor it daily to ensure that you have enough buffer to cover the spikes which can move 200 pips in 1 second on big news. The instos stop hunt all the time there is news so you have to avoid your stop being hit or your dealer closing your trade when it runs out of buffer.

You could also try a merchant bank, they may do this in a way that suits you, set and forget sort of thing.

When I was dabbling in FX the big forum was http://www.forexfactory.com/ but they are mainly private guys talking FX.