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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (2015)	6/21/2001 5:06:13 PM
From: Chip McVickar	Respond to of 12411

>>I've been watching the euro on and off. I am trying to decide if I want to move some USD there since the dollar is so strong...<< That's what hedging currencies were set up for.., protecting the value of your home assets against currency fluctuations. I know the trader who did the first hedging for the Vatican in the early years. Send one dollar to Europe and there's a transaction fee to get it there and back..., fees to hold it in another account..., tax consequences on profits..., accounting fees. You might lose money and still pay all related costs..., And you have to send every dollar...! As long as you understand leverage with options and futures..., perhaps you would be better funding an account that would allow you to hedge..., buy calls on the Euro and puts on the dollar. If you've got $250,000 worth of business tied up in foreign currencies you can hedge any currency with contained risk with options and keep the bulk of your the capital here earning interest. John Pitera understands this investment world and the math behind it, so does GZ and a few others. I do Not.....! John's a registered financial planner and I believe manages other folks international holdings...?