Trading money on the Markets? Help

Discussion in 'Trading' started by Kastro_316, Jan 9, 2004.

  1. Today when i was in my Economics class at college, my prof told the class about trading money. He explained it as if i took canadian money and cashed it for american money when the american dollor was low, then cashed back when it was high. He explained people make a good living off it, but i was kinda skeptical about it???? can anyone help me out?

    So in order to do this you would pretty much have to predict the business cycle?
  2. omcate


    That probably is not a good example. USD and CAD are highly correlated. Currency trades usually settle with two business days, whereas USD/CAD trades within one. I know that a cash settlement team at one of the biggest Wall Street firms hedge the risks for holding all foreign currencies using derivatives, with the exception of CAD.