I am canadian. since the canadian dollar is worth almost as much as the american dollar...couldn't I just exchange several thousand canadian dollars to american.... then wait till the american dollars go up in value, then trade it back....? do that over and over again and I should be rich.. right?
2007-09-22 02:06:28 · 18 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Theoretically, yes. That's what currency traders do.
2007-09-22 02:09:51 · answer #1 · answered by pepper 7 · 2⤊ 0⤋
Yes if you know what you are doing and you will need more than just a few dollars.
This is how money gains or looses value against other currencies. It is what investors are wiling to pay for one or the other. Billions move every day. If you have a few thousand to spare then why not buy the green back and then later sell it. While you own the green put into an account that will gain you some interest.
Remember what goes down does not always go up or the other way if you like. You may have to hold the money for at least two years.
I am sure you have heard of the money market. That is exactly what it is.
2007-09-22 09:17:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most of the people that answered your question obviously don't know that currency traders do that very thing. It's like playing the market with it's pork belly futures, orange juice, oil, silver, and gold but they trade dollars, pounds, the yen, and other currency based on world market trends. People do make or lose money with currency trading but it takes a lot to get into it as well. A quick Google search for 'Currency trading' should give you more information.
2007-09-22 09:23:13 · answer #3 · answered by Chris L 3 · 0⤊ 0⤋
No, because the US dollar will not go up in value.
Look at the replies on the US version of Yahoo Answers. People can't spell or write grammatically. Many US citizens are semi-literate these days. Consequently firms will not want to employ them and will look abroad, where the population is better educated and will work for far less. This will continue to undermine the US economy and the dollar will continue to slide.
2007-09-22 09:11:36 · answer #4 · answered by 2kool4u 5 · 0⤊ 0⤋
how much money you talking about? It takes a long time for a currency to rise, particularly when there are as many economic problems plaguing the US as there is now. Unless you have a million canadian that you dont need for a long time, its unlikely you'll become rich, then again if you had a million CAD, you're already rich, congrats!
2007-09-22 09:11:05 · answer #5 · answered by redwine 6 · 0⤊ 0⤋
Pointless, because forex will not retain. Exchange rate may rise, but the next thing the currency value will go down. But as a money changer, you can earn more because you need to "tax" the customer for the service.
2007-09-22 09:19:15 · answer #6 · answered by Lacieles 6 · 0⤊ 0⤋
It really depends on how much money you have to start with and if you need that money for something else in the process and also what you consder to be rich. I have all the confidence that American dollars will be stronger in future.
2007-09-22 09:33:09 · answer #7 · answered by Nina, BaC 7 · 0⤊ 0⤋
The American dollars never go up in value.
2007-09-22 09:08:31 · answer #8 · answered by SheRa 3 · 1⤊ 1⤋
You want to gamble on the currency markets. You're as likely to get rich this way as you are by betting on football. Ultimately it's a gamble, and with the way the currency markets are going, I'd stay well away from it now.
2007-09-22 09:10:36 · answer #9 · answered by the_chosen_one 3 · 0⤊ 0⤋
of course not. after u buy the currency u sell it back with a lower price. and since the value is not that different so u'll never get rich even though u make some profit..
2007-09-22 09:13:55 · answer #10 · answered by Le Guepp 1 · 0⤊ 0⤋
Yes, in like a million years!
2007-09-22 09:13:16 · answer #11 · answered by Anonymous · 0⤊ 0⤋