• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Reply to: Daily Boom

Collapse

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Daily Boom"

Collapse

  • AtW
    replied
    Originally posted by DiscoStu View Post
    I'd love to have a coherent argument, but I'm pretty wasted. Maybe tomorrow...
    Anytime old chap!

    Leave a comment:


  • DiscoStu
    replied
    Originally posted by AtW View Post
    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...

    Leave a comment:


  • AtW
    replied
    Originally posted by DiscoStu View Post
    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.

    Leave a comment:


  • DiscoStu
    replied
    Originally posted by AtW View Post
    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.

    Leave a comment:


  • DiscoStu
    replied
    Originally posted by Tingles View Post
    SPECULANT!
    SPEKULANT

    Leave a comment:


  • AtW
    replied
    Originally posted by Tingles View Post
    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.

    Leave a comment:


  • Tingles
    replied
    Originally posted by AtW View Post


    shared prosperity



    GBP/EUR exchange rate is

    Maybe I should have bought a derivative on GBP last year

    SPECULANT!

    Leave a comment:


  • AtW
    replied
    Originally posted by DimPrawn View Post
    Sit back and enjoy the prosperity.


    shared prosperity



    GBP/EUR exchange rate is

    Maybe I should have bought a derivative on GBP last year

    Leave a comment:


  • DimPrawn
    started a topic Daily Boom

    Daily Boom

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

    Boomed!



    Gordon is our saviour.

    Sit back and enjoy the prosperity.

Working...
X