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I receive a recurrent paycheck in a foreign currency, which in my case is USD. Right now, I immediately convert it to EUR, which is the currency I live with.
Say I receive recurrent payments of 5000 USD: do I have any strategies for getting the best out of the conversion to EUR, in the short term (1 or 2 months)? Are there best practices?
No. Unless you can predict whether it will go up or down, on average you'll have the same amount of EUR no matter whether you exchange it now or later.
If you predict the conversion rate will go up you can wait until it goes up and if you predict it will go down you can exchange it now before it goes down. Even if you do predict it'll go one way, you could be wrong, but assuming you predict correctly more than half the time, you'll make a profit by following the prediction.
But if you don't have any way to predict whether it'll go up or down - which is most of us - then it's basically a coin toss. You have a 50/50 chance of getting more or less, so on average it doesn't make a difference.
