Foreign Exchange Markets

[AppleXY]

Personally, for me, I would love high interest rates

This means that the AUD/USD has more increased chance of getting buying (bull) pressure!!

Also, the investor  will get a high interest rate (cash rate) differential profit. (overnight SWAP, earns you interest on your long position, excellent for JPY which has an extremely low cash yield, <1%)

^ Captial Investment

Yeah, just my 2cents :p

[gulamali]

Personally, for me, I would love high interest rates

This means that the AUD/USD has more increased chance of getting buying (bull) pressure!!

Also, the investor  will get a high interest rate (cash rate) differential profit. (overnight SWAP, earns you interest on your long position, excellent for JPY which has an extremely low cash yield, <1%)

^ Captial Investment

Yeah, just my 2cents :p

that is the dumbest thing i have ever heard.

why one earth would you want increased Capital Investment ?? IT doesnt help us .. it helps foreigners ... it just adds to our Foreign Debt, which is already at historically high levels.

And with a higher dollar .. exports are damaged .. soo watch what you wish for ... of course we dont want the dollar too low, but not too high either.

Also I wanna buy a house, as well as invest in property .. so i'd rather IR be low ! after all look after Australian's first, not foreign investors !

[AppleXY]

Uhhh, Derivatives my friend, Derivatives. Ever traded on Forex? You can earn significant returns of Forex, as every $1 is leveraged to $100, some upto $400!

If interest yields increase significantly, generally speaking the Aussie dollar is bound to go up, espically with the AUD/USD.


And, SWAP, its overnight interest for position that you hold, well, overnight! It can be good investing strategy coupled with a strong long/short position.

[gulamali]

never the less .. there is a little something people call a 'mortgage'

and the 'australian dream' not every bloke knows how to trade on the forex .. for the benefit of the whole country ... i'd rather IR be kept to a minimum.

[brendan]

trying to make money off forex is highly highly risky business.

[div123]

isnt it also illegal to speculate on currency as well ?

[AppleXY]

what the fk?!

Uhh, almost a 1/10th of currency movement is by speculation. Actually, there was a story on CNBC where a reserve bank (hmm, I think it was china) sold one of the currency reserves to buy a >$10bill (or some signficant figure) of Euros, which made the currency increase by 10-20pips, if not, more.

I'm pretty sure every IB (espsh Deutsche Bank, Citi and Goldman) has a Fixed Income division where FX is apart of it

In my early years, I used this fantastic broker, Interbank FX. One of the best brokers I have ever seen in the market

www.interbankfx.com/

(Highly Respectable) Interactive Brokers (1/2 pip spread on EUR/USD)

http://www.interactivebrokers.com/

(Highly Respectable) CMC Markets Australia

http://www.cmcmarkets.com.au/en/content/forex/index.jsp

dBFX (deutche Bank FX)
http://www.dbfx.com/

But i'd suggest a broker with MetaTrader 4 access. MT 4 is the maddest trading platform, love it. I may well go with IBFX someday

But my question is, how do you pay taxes? LOL.

PS: A word of warning, Forex is extremely risky and may cause significant losses to your investment portfolio. Ensure you are fully aware of the high risk of this volatile market. Brendan- is completely correct, Forex indeed is very risky business.

[AppleXY]

loool, I can't wait to learn the Heat Equation, Black-Scholes Model and Brownian Motion to apply to financial markets

<actuarial is gonna be the madddesst> LOL.

[azhtey]

Personally, for me, I would love high interest rates

This means that the AUD/USD has more increased chance of getting buying (bull) pressure!!

Also, the investor  will get a high interest rate (cash rate) differential profit. (overnight SWAP, earns you interest on your long position, excellent for JPY which has an extremely low cash yield, <1%)

^ Captial Investment

Yeah, just my 2cents :p

W. T. F.

[azhtey]

Think about the economy!!!!! U will ultimately be screwed over no matter what

[gulamali]

Think about the economy!!!!! U will ultimately be screwed over no matter what

thankyou ! =]

[AppleXY]

Jeez, Cash rates can be good for the economy as well -- it raises alot of domestic investment here

But, I know, I know, mortgages and other stuphs will screw Australians over :p

I'm naturally a non-credit person, I just hate credit urkk. I will only borrow cash if its absolutely necessary. If everything goes according to plan, I hope to take a minuscule home loan.

[brendan]

i find the ridiculous amount of jargon in finance to be quite pretentious

[Collin Li]

i find the ridiculous amount of jargon in finance to be quite pretentious

OMFG. I agree! That is how I felt after studying Finance 1 in semester 1.