95 votes
Accepted

Why do money exchangers give different rates to different bills?

When dealing with currency exchanges, it's important to remember that only the local currency is "money", all the other currencies are just "things". This is the reason behind the "buying"/"selling" ...
  • 752
73 votes
Accepted

Are currency terms like USD, EUR, CNY used in all languages?

As Flux said, "中国新年" is a literal translation of "Chinese New Year". CNY is 人民币 in Chinese. USD, EUR and CNY are not known from English. They are known from ISO 4217 standard. In ...
  • 10.1k
41 votes

Why do money exchangers give different rates to different bills?

Because it is physical money. They need to handle it. And they may simply not be able to as easily and as efficiently offload 5 USD bills compared to 100 USD bills. Result is a different pricing ...
  • 11.5k
15 votes
Accepted

Which risk did I take winning this much?

If you didn't have a stop loss set (or trailing stop loss) then an equally random spike in the other direction could have obliterated your account and put you in debt to the broker, depending on the ...
  • 20.1k
13 votes
Accepted

Losing Money with Norbert's Gambit

When you hold units of the DLR/DLR.U (TSX) ETF, you are indirectly holding U.S. dollars cash or cash equivalents. The ETF can be thought of as a container. The container gives you the convenience of ...
  • 31.5k
9 votes
Accepted

Are there alternatives to double currency account to manage payments in different currencies?

Yes, there is indeed a great alternative for all European residents: getting a Revolut account. Revolut is a fully-online bank who's main benefits include the lack of fees (with some limits) and a ...
  • 5,542
9 votes

Why do money exchangers give different rates to different bills?

It sounds like the money exchanger is making up a reason why you're not getting the advertised rate, independently of the notes that you actually have on you. So they're basically scamming you. That's ...
  • 2,623
9 votes
Accepted

What are the advantages/disadvantages of investing in foreign currency?

Hedging - is a reason. You might want to offset risk to your own currency by investing in other monetary systems. The famous example here is the Zimbabwean Dollar. In that particular case, ...
8 votes
Accepted

What does "foreign currency" mean in this context?

From the context, it's referring to buying money and things that are equivalent to money (e.g. travelers checks). These are what they call "cash-like transactions". Buying something from an ...
  • 9,093
7 votes

Are there alternatives to double currency account to manage payments in different currencies?

You could use a Credit or Debit Card running in US $, drawing from your US$ account, and pay everything with it. If you pick a company with free foreign conversions, you would get the standard ...
  • 37.2k
6 votes

How to detect currency rates changes?

There is no 'authority' that calculates it, it is offer and demand. Millions of people and organizations buy and sell currencies continuously, and they are willing to buy or sell for a certain price, ...
  • 37.2k
6 votes
Accepted

How should residents of smaller economies allocate their portfolio between domestic and foreign assets?

why should I have any bias in favour of my local economy? The main reason is because your expenses are in the local currency. If you are planning on spending most of your money on foreign travel, ...
  • 20.9k
5 votes

Losing Money with Norbert's Gambit

I think your concern is equivalent to someone performing a currency exchange on Monday at one rate, and then wishing they had done it the following Friday because the exchange rate became more ...
  • 51
5 votes

Are there alternatives to double currency account to manage payments in different currencies?

Cheaper and faster are usually mutually exclusive. If you want faster, nothing is faster than cash. I would recommend using an ATM to withdraw cash from your USD account as Florints and then use as ...
  • 3,632
5 votes
Accepted

How the uniformity in exchange rates are achieved?

If it were different, then this would produce something called "arbitrage". When arbitrage appears, it generally disappears rather quickly as people take advantage of it. For instance, suppose that ...
5 votes

What are the advantages/disadvantages of investing in foreign currency?

There are a few reasons someone might do this: Investments in a foreign currency may be incidental to the underlying investment. For example, if someone outside of the US wants to invest in APPL, they ...
4 votes

How should residents of smaller economies allocate their portfolio between domestic and foreign assets?

We face the same issue here in Switzerland. My background: Institutional investment management, currency risk management. My thoughs are: Home Bias is the core concept of your quesiton. You will find ...
  • 129
4 votes
Accepted

Buy Php in Malaysia and sell to Philippines

I noticed the buy/sell board table. Where did you notice this. Generally for a pair of currencies, there is Unit associated along with direction. The Unit is generally constant. These are only ...
  • 56.7k
4 votes

Losing Money with Norbert's Gambit

There's a possibility to lose money in exchange rate shifts, but just as much chance to gain money (Efficient Market Hypothesis and all that). If you're worried about it, you should buy a stock in ...
4 votes

Investing in currency, long term

Currencies go down in value over the long term, not up. This is due to inflation, the natural rising of prices. People who make money trading currencies do so by taking advantage of typically short ...
  • 2,553
4 votes

Hedging against currency risk

In a word: "no". Essentially, the old adage: You don't get something for nothing. applies. If there was a way of removing risk for free (i.e. without lowering returns), then that element of risk ...
  • 9,035
4 votes
Accepted

How to offset currency exchange losses?

Your title is: "How to offset currency exchange losses?" However your course of action could alternately make the following a more accurate title: "How to take on additional currency exposure / risk?"...
4 votes
Accepted

Who Is responsible when a currency transaction is mistakenly converted by an intermediary bank?

The client should lead on this, because they never paid their bill. They transferred you a number of Euros that was not sufficient to cover the bill (because their bank converted with some spread). ...
  • 6,312
4 votes
Accepted

How should near-instant forex transactions be handled for taxes?

It doesn't matter. The relevant tax is Capital Gains Tax, and you'll end up with the same gain (or loss) in GBP no matter how you calculate it. You do need to keep records to show how you calculated ...
4 votes
Accepted

VISA Debit card refund on another currency

The refund will be in the same currency that it was charged in. When making a charge, the merchant specifies an amount and a currency. That is converted to the currency of the card, using the ...
  • 31.1k
3 votes

Are there alternatives to double currency account to manage payments in different currencies?

Banks in certain countries are offering such facility. However I am not aware of any Bank in Hungary offering this. So apart from maintaining a higher amount in HUF, there by reducing the costs [and ...
  • 56.7k
3 votes

How to invest in Japan's stock market from the UK

Use an exchange traded fund ETF, namely SPDR MSCI Japan EUR Hdg Ucits ETF. It is hedged and can be bought in the UK by this broker State Street Global Advisors on the London Stock Exchange LSE. ...
  • 980
3 votes

What foreign currency exchange rate is applied at cash machines

What foreign currency exchange rate is applied ? The rate applied is "Standard Rate". Different geographies / Banks call it by different names, Card Rate / Sheet Rate / TT Rates / etc. Essentially ...
  • 56.7k
3 votes
Accepted

Selling property outside the US - gains are taxable, but how do they convert?

Since you did not treat the house as a QBU, you have to use USD as your functional currency. To calculate capital gains, you need to calculate the USD value at the time of purchase using the exchange ...
  • 3,632
3 votes

Investing in currency, long term

When it comes to currencies, the term "speculation" is more appropriate than "investment". "Investment" implies that you are providing financial resources for some economic activity, and receiving a ...

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