Daily Boom

[DimPrawn]

http://www.telegraph.co.uk/finance/e...economies.html

Boomed!



Gordon is our saviour.

Sit back and enjoy the prosperity.

[AtW]

Sit back and enjoy the prosperity.

shared prosperity



GBP/EUR exchange rate is

Maybe I should have bought a derivative on GBP last year

[Tingles]

shared prosperity



GBP/EUR exchange rate is

Maybe I should have bought a derivative on GBP last year

SPECULANT!

[AtW]

SPECULANT!

It would not be speculation, which in Wikipedia defined as: "In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum"

A long term call option on a currency would be a hedging operation, perfectly valid use of derivatives. There is good economic sense in it, unlike spread betting and buying/selling such options all day long just to make money on difference in rates.

[DiscoStu]

SPECULANT!

SPEKULANT

[DiscoStu]

It would not be speculation, which in Wikipedia defined as: "In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum"

A long term call option on a currency would be a hedging operation, perfectly valid use of derivatives. There is good economic sense in it, unlike spread betting and buying/selling such options all day long just to make money on difference in rates.

Bollocks it wouldn't.

[AtW]

Bollocks it wouldn't.

An exporter that exports from Country with currency A to Country with currency B may wish to buy call option to exchange currency B to currency A to reduce currency risk.

That's a normal financial operation that is done in the course of normal business - it does not pursue goal to enrich oneself on constantly changing exchange rates, no - all it does is provides some certainity by reducing currency risk in exchange for some known cost.

[DiscoStu]

An exporter that exports from Country with currency A to Country with currency B may wish to buy call option to exchange currency B to currency A to reduce currency risk.

That's a normal financial operation that is done in the course of normal business - it does not pursue goal to enrich oneself on constantly changing exchange rates, no - all it does is provides some certainity by reducing currency risk in exchange for some known cost.

I'd love to have a coherent argument, but I'm pretty wasted. Maybe tomorrow...

[AtW]

I'd love to have a coherent argument, but I'm pretty wasted. Maybe tomorrow...

Anytime old chap!