Quote:
Originally Posted by The Fonz
Hypothetically speaking, lets say I took $2000 and bought US at 93 cents.
2000 x .93 = 1860 USD
Then sold at 80 cents...
1860/.80 = 2325 CAD
That seems like an easy way to make $325, what am I missing? What sort of exchange fees would I have to pay?
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Very little depending on your bank. That's essentially how forex works. What you are missing is you are betting the dollar will drop to 80 and that's like betting on everything else on the stock market without doing your homework. It may or may not happen and if it does it might take a long time where your money would have been better invested or put to work elsewhere. I own a stock that was selling for $7 half a year ago. It's now selling for $14. If I had dropped all my life savings into it then, I could have doubled it...or I could have wiped myself out since that was the height of the recession and it might have gone even further down.