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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (92318)	3/16/2008 11:50:22 PM
From: Oblomov	Respond to of 110194

If you have a spot currency account with a good broker, then you can buy a cross if you have enough collateral (you have to have enough cash to cover the interest differential or you will get a margin call). That's probably too risky, since there will be some huge volatility in currencies over the next few weeks, I think. No sense in risking a personal liquidity crisis.<g> Probably it would be better to sell futures contract for one currency, and buy a dollar equivalent set of futures for the other currency. The leverage would be less, but you wouldn't have any cash flow issues.