2007-03-04 16:10:22 · 5 answers · asked by Joel 2 in Business & Finance ➔ Investing
you could but you stand to lose a LOT more. and the Franc still exists? I thought it went to Euro.
2007-03-04 17:22:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hi Joel,
What you are probably looking for are some facts.
Let's say you went back 10,000 hours (1/12/06) and opened an account hedging the EUR/USD at 1.2145 with the USD/CHF at 1.2743.
Let's assume that you opened an account with $5000 but only wanted to use a margin of 10%....investing $500 into your trade.
You took a long position on both currency pairs and traded with a 400-1 leverage.
You didn't do a thing with your positions in fact you didn't even look at them for 13 months.
Today (3/5/07) the EUR/USD is at 1.3088 and the USD/CHF is at 1.2206. Your EUR/USD position is up +943 pips and your USD/CHF position is down -537 pips. Your Euro position would be +$9342 and you Swiss would be -$4233 for a net gain of $5109.
As a nice kicker you would also have made $2.70 per day in interest for an additional $1115.10.
Your $5000 account grew to $11224 in 413 days (10,000 hours).
125% in 13.5 months.
So my answer is yes you can make very nice money hedging the euro and swiss franc.
If you want any more facts drop me an email at pupp52@yahoo.com
2007-03-05 10:55:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hi Joel,
Well historically speaking the Euro and the Swiss Franc have an inverse correlation meaning when one pair goes down the other pair goes up. My wife and I have seen this first hand because we've been trading those two pairs using the FreedomRocks strategy for the last 7 months. I just emailed you some more information that I think you'll find very interesting and if you have any questions just let me know.
Best Regards,
Yo & Jaime
2007-03-05 01:28:50 · answer #3 · answered by Smart Forex Investor 1 · 0⤊ 0⤋
i suppose you could, but it would be purely a bizarre arbitrage. i mean, how much differently do the euro and the frank move? i could see buying new-issue bonds in one currency and hedging with the other, but, well, i would just think there's better ways (perhaps more agressive, perhaps not) to make more money.
2007-03-04 17:43:08 · answer #4 · answered by mzimmerman@rocketmail.com 2 · 0⤊ 0⤋
No! Most Forex schemes are scams.
2007-03-04 16:22:30 · answer #5 · answered by Greg M 2 · 0⤊ 0⤋