New answers tagged

1

There is a reason that can be used for mid-term saving. Let's say that you are saving for a large purchase, and know that you have several months or even a year before you have the money. You already know the brand and it is produced outside your own country (or outside of your currency system) - let's say you live in Germany and want to buy a Japanese car, ...


0

The value of a home currency is as set against foreign currencies. That's particularly true with import or export. In a forex account an investor can take their own currency against foreign currencies. Or an investor can often get a better interest rate by taking a foreign currency against their home currency. And an investor in a foreign security can hedge ...


5

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 would be taking on USD risk, which could be a foreign currency to them. From that point, someone may want to hedge that risk (for example, if you have $10k USD ...


8

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, hyperinflation was a good reason to have foreign currency investments. And there are other cases where local currency doesn't actually define your local costs - for ...


0

Think not about positions, but about the value of the assets in your portfolio in your home currency. It suffices to know the rates in USD, e.g. let Rx = EUR/USD, Ry = GBP/USD, then assuming the "no arbitrage principle", we have EUR/GBP = Rx/Ry. Indeed, since the only thing your tax authority cares about is the value of your assets in USD, whether ...


1

Individual securities as well as the market have a periodicity that varies between high and low prices along with periods of range trading. If the period that you select for your indictor matches the periodicity of your security, the indicator works. What does the above mean? Pick a security, an indicator as well as an individual bar time (minute, hourly, ...


10

Which traders? Quoting Lawrence Harris (bold is mine): Market-makers provide liquidity to impatient traders. They try to turn their inventory at a profit. To profit, they must trade at prices that produce a balanced order flow on both sides of the bid/ask spread. They find these prices by experimentation. Their inventory turnover may be extremely high. ...


31

A market maker has several advantages: Faster access to market news and they can change their price faster than you can If they are the market, they buy at the bid and sell at the ask when the public transacts with them and they earn the spread. They see the order book and can trade knowing the depth and size of the market. They can arbitrage a position ...


0

MasterCard and Visa each have a webpage where you can look up their conversion rates for purchases on any day: MasterCard Currency Converter Visa Currency Exchange Calculator You can find blog posts online where people attempted to survey results from these tools and compare the two companies. Here are a couple of examples: Nomad/Gate, 2017: Is Visa or ...


0

For Mastercard you can try to use their API. It is not free though. But they promise they can deliver their currency rates history. The Enhanced Currency Conversion Calculator is a subscription-based service that provides access to Mastercard's daily currency conversion rates and historical currency conversion rates This is a link: https://developer....


0

Assuming that you must eventually convert this money to EUR, follow the Law of Large Numbers. Pick a time period you can live with, and do multiple transfers over that period. Each transfer should be the of same amount, and with the same number of days between transfers. If today's exchange rate is unlucky, and it goes up later, you won't miss out completely ...


6

This is yet another sunk cost/anchoring/status quo question. You have a choice between investing your money in the stock market or investing it in MYR. You seem to be letting the fact that you're currently invested in MYR to bias your thinking. If you were in Europe, had no involvement in MYR, and hadn't had this exchange rate loss, would you be looking at ...


0

Speaking generally: Lower leverage means risk is better controlled. In the simplest case, an unleveraged long stock position (no matter how volatile) cannot lose more than what you put in. Higher leverage on a less volatile asset may be calibrated so that your expected exposure to volatility is the same, but there is more room for unexpected volatility to ...


1

It sounds like you're asking an XY problem. You want to buy stock with a different currency than you have, and then think that after you get your money exchanged you'll have more money to invest? Maybe I just haven't read the question correctly, but what you are asking is that you want to exchange one form of finances for another so that you can immediately ...


7

The EUR currency is a red herring. You happen to use it as a medium to buy the stock fund, but your return will be just as if you were able to buy the same fund in MYR on a local exchange. So the real question is whether the fund (stock index) priced in MYR will return more or less than the 1.5% interest rate. As a general rule, stocks return more than cash ...


27

Fundamentally here you're asking for a sound prediction on direction of currency markets (and in a secondary respect the direction of the stock market). No one credible who even vaguely knows this will tell you, so you're not going to get an accurate answer to the specific question from anyone who isn't an idiot or a fraud. Outside of this point, you clearly ...


1

I had a misunderstanding with the original agent at TD I talked to. TD can indeed do foreign stock exchange trades, including in the TFSA, albeit for a fee ($150 was what they quoted).


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