How do I best profit from a currency exchange?
Jake Buffett asked:
Im wanting to transfer some of my US money into my UK account, but do not understand the way the exchange rate works.. Do I wait until the dollar is at its weakest against the pound, or wait until the dollar is strong to get a better profit from conversion?
This entry was posted
on Sunday, March 21st, 2010 at 12:00 am and is filed under Other - Business & Finance.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Im wanting to transfer some of my US money into my UK account, but do not understand the way the exchange rate works.. Do I wait until the dollar is at its weakest against the pound, or wait until the dollar is strong to get a better profit from conversion?
Can somebody explain this to me?
March 24th, 2010 at 3:55 am
You wait until the dollar is strong against the pound.
The stronger dollars buys more pounds.
But the fluctuation with the pound and dollar are slow to move( unlike the Euro).
Unless your talking about a lot of money, you can wait, but remember it can also work against you( if the dollar weakens).
If it;s a few hundred dollars, then just exchange it( you’ll also pay a fee for that). jc
March 24th, 2010 at 6:39 am
The dollar vs pound is always fluctuating. So, even if you make a quick profit on the conversion, you wont really benefit from it unless you actually spend that money. It’s quite possible that the rates will shift again and you’ll be back to where you started.
The only way to make significant profits is through FOREX trading, which involves substantial risks as well as a high degree of understanding of the currency markets. Alexander