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Daily Boom

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    Daily Boom

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

    Boomed!



    Gordon is our saviour.

    Sit back and enjoy the prosperity.

    #2
    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

    Comment


      #3
      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!

      Comment


        #4
        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.

        Comment


          #5
          Originally posted by Tingles View Post
          SPECULANT!
          SPEKULANT
          ǝןqqıʍ

          Comment


            #6
            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.
            ǝןqqıʍ

            Comment


              #7
              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.

              Comment


                #8
                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...
                ǝןqqıʍ

                Comment


                  #9
                  Originally posted by DiscoStu View Post
                  I'd love to have a coherent argument, but I'm pretty wasted. Maybe tomorrow...
                  Anytime old chap!

                  Comment

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