Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (140684)	1/28/2007 10:00:22 AM
From: Moominoid	Read Replies (1) \| Respond to of 209892

I have accounts in Australia and in the US (latter including IB). The currency ETFs aren't attractive as they don't allow you to do anything with that foreign currency - you have to hold it as cash. I've been experimenting with forex futures as a way of hedging my exposure... but am thinking options on futures might be a better way to go. So at the moment I am just experimenting still. But you can put down roughly $1000 in margin and buy an AUD future and be exposed to AUD 100k. That then would hedge away USD 78k of US dollar exposure. But all the while the USD 78k can be invested in anything you like. If I short an AUD future then I convert AUD 100k exposure into a USD exposure but my money stays in Australia invested in Aussie mutual funds and stocks etc. Of course if you get the direction of the market wrong you rapidly have to supply a lot more margin :) If you use options that's not the case of course. Up till now I just have gradually shifted money between the two countries. From 2002 when I moved back to the US from Australia I often sent money to Aus when the Aussie looked cheap or keep money in the US when the Aussie looked expensive. I am planning to begin transferring money from dividends and distributions in Aus back to the US. I'm not interested in speculating in currencies just trying to hedge my exposure against adverse movements when they seem likely to me based on either fundamentals or technicals.

To: Patrick Slevin who wrote (140684)	2/2/2007 11:33:19 AM
From: skinowski	Respond to of 209892

park money to take advantage of rates or fluctuations Looks like currency ETF's may be an OK instrument for this purpose. They pay a dividend - not a great one, but they do. A "slow" and relatively safe way of doing it is rotate into those that for some reason you would expect to do better. Sentiment seems to help here too. Right now, the CAD is unpopular... so, FXC could, perhaps, be the preferred parking place for now. softwarenorth.net