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Is it possible to make a profit on Currency Fair?

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  • 01-03-2015 11:19am
    #1
    William F
    Closed Accounts Posts: 473 ✭✭


    ANyone?


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    #2
    GerardKeating
    Registered Users Posts: 7,652 ✭✭✭GerardKeating


    William F wrote: »
    ANyone?

    In theory Yes, for example trading CHF the other month, just before the big change in rates


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    #3
    rightyabe
    Registered Users Posts: 812 ✭✭✭rightyabe


    yes. I made a few transactions between euro and Australian dollar and have made approx. 5% profit in 18 months


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    #4
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    William F wrote: »
    ANyone?

    FX trading is risky. You can potentially loose significant sums. It is not something most people should get involved in.


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    #5
    CiniO
    Registered Users Posts: 16,067 ✭✭✭✭CiniO


    By FX you refer to Forex?
    I think that's not what OP is asking about.


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    #6
    William F
    Closed Accounts Posts: 473 ✭✭William F


    I'm in new zealand at the moment and the exchange rate when I arrived here was 1 euro = 1.60 dollar.

    Now it's 1 euro = 1.49 dollar ( It was 1.48 yesterday).

    If I had a grand to play with, and assuming the currency returns to it's original value in a couple of weeks, I could make over a hundred bucks. Which is a handsome profit considering you do nothing to get it.

    Now if I were to sell it on a daily basis, with smaller margins, I could make smaller profits but far more regularly provided I get it right.

    Sounds like a simple way to make money?


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    #7
    dRNk SAnTA
    Registered Users Posts: 777 ✭✭✭dRNk SAnTA


    You are assuming the currencies will return to their previous level in a couple of weeks. Why?

    If you traded on a daily basis, wouldn't you be paying the Currency Fair fees each time? eating up whatever profit you have?


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    #8
    28064212
    Registered Users Posts: 10,632 ✭✭✭✭28064212


    William F wrote: »
    Sounds like a simple way to make money?
    ...
    William F wrote: »
    assuming the currency returns to it's original value in a couple of weeks
    William F wrote: »
    provided I get it right.
    Well yes, assuming you can predict the future, you can make money off it. Provided Nomadic Storm comes in first in the 2:15 at Southwell, I'm going to make a bundle.

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    #9
    William F
    Closed Accounts Posts: 473 ✭✭William F


    dRNk SAnTA wrote: »
    You are assuming the currencies will return to their previous level in a couple of weeks. Why?

    If you traded on a daily basis, wouldn't you be paying the Currency Fair fees each time? eating up whatever profit you have?

    I'm assuming they'll return because it never remains a set rate forever. It will go either way.

    From what I've read, the charges are something like 0.15% compared to 3-5% charged by banks.

    On second thoughts maybe you're right.


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    #10
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    CiniO wrote: »
    By FX you refer to Forex?
    I think that's not what OP is asking about.

    Yes, FX means Forex.

    The OP asked "is it possible to make a profit on Currency Fair?". As far as I know, FX is their only product.


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    #11
    CiniO
    Registered Users Posts: 16,067 ✭✭✭✭CiniO


    JTMan wrote: »
    Yes, FX means Forex.

    The OP asked "is it possible to make a profit on Currency Fair?". As far as I know, FX is their only product.

    OK so, maybe than I just don't understand what Forex means.


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    #12
    William F
    Closed Accounts Posts: 473 ✭✭William F


    JTMan wrote: »
    Yes, FX means Forex.

    The OP asked "is it possible to make a profit on Currency Fair?". As far as I know, FX is their only product.

    So you're saying I can trade currency on Forex without incurring the same fees as Currency Fair?


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    #13
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Firstly, the term "forex" is the same as as "FX".

    The company called Forex charges FX margins like the other providers.


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    #14
    William F
    Closed Accounts Posts: 473 ✭✭William F


    JTMan wrote: »
    Firstly, the term "forex" is the same as as "FX".

    The company called Forex charges FX margins like the other providers.

    What do you mean by margins?

    I'm planning to play the same strategy on Forex with added leverage to increase my profits.

    I'm going to make stop loss of 1.45 and profit at 1.55.

    If the euro rises like this in value against the NZ Dollar, I stand to gain big profits depending on how much leverage I can use.

    I anticipate the value will rise sometime in the summer.

    My only concern is that having a trade open for three or so months may incur charges I may not be aware of.


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    #15
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Margin means that you do not get the market FX rate, you get market rate + / - a percentage margin that the FX broker charges.

    Good luck with your crystal ball FX rate gazing. More people loose their shirt guessing FX direction than make money.


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    #16
    William F
    Closed Accounts Posts: 473 ✭✭William F


    JTMan wrote: »
    Margin means that you do not get the market FX rate, you get market rate + / - a percentage margin that the FX broker charges.

    Good luck with your crystal ball FX rate gazing. More people loose their shirt guessing FX direction than make money.

    Maybe you had a bad experience or something but the Euro/US Dollar is at an excellent rate for forex investors at the moment.


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    #17
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    William F wrote: »
    Maybe you had a bad experience or something but the Euro/US Dollar is at an excellent rate for forex investors at the moment.

    Nope, never had a bad FX experience. I have seen the losses that FX trading (whack and mole at best) has inflicted on others.

    "An excellent rate" is a matter of opinion. Millions of market participants have determined the EURUSD FX rate. Outsmarting the market participants is not an easy game.


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    #18
    duffman13
    Registered Users Posts: 8,952 ✭✭✭duffman13


    Got to say William you make it sound very easy. Ive used currency fair for four years to trade australian dollar and the money you make is not worthwhile against the risk involved. Currency is extremely volatile with so so many variables it is almost impossible to predict to make a consistent profit. You also need to take into account inflation and access to funds.


    Just for example http://www.xe.com/currencycharts/?from=EUR&to=AUD&view=5Y

    Thats a five year cycle of euro to aus dollar. I did my first trade back in 2011 at 1.47, made a fair bit transferring back at 1.17 in 2012 but it very easy to be on the opposite end of the spectrum and you should proceed with caution. I got lucky and have made a few small loses in intervening ears despite having a bit of a love of economics. Exchange rates are extremely difficult to predict.


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