if i turn my dollars into pounds...?
i have about 800 dollars cash - if i trade it into pound sterlings....and the pound value goes up...if i exhange it back to dollars then will i make a profit or will i lose money - not counting the comission?
i have about 800 dollars cash - if i trade it into pound sterlings....and the pound value goes up...if i exhange it back to dollars then will i make a profit or will i lose money - not counting the comission?
Comments
If you're really set on doing this you'll have to do it through some type of currency trading desk (GFTForex.com, Forex.com) to have any shot at turning a profit with $800. If you just go to the airport or to a bank you're going to lose your shirt on the commissions/fees and they will give you less than the actual exchange rate. For example, Travelex (the one you see at airports):
$800 gets you 356gbp before about $10 worth of fees
The REAL exchange rate, however, gets you 389gbp so you've already lost 43gbp (or $83). So before the currency even moved at all, your down 10% (and that's before TravelEx hoses you again when you change the gbp's back into dollars).
If you take a look at the comparative exchange rates on Yahoo! Finance you can see that it takes a long long long time for a currency to make a 10% move against another.
If you're really that set on the idea as an investment strategy, go for one of the currency trading websites and don't swap actual paper money. I'd invest a lot of time and research first, there's a lot to it. But in answer to your question in the above scenario, yes, you will make money if the pound sterling goes up, and lose money if it goes down (against the dollar).
By saying the value of the pound goes up, is not a clear phrase.
What you really mean si the value of the pound goes up relqtive to another currency. If that other currency is the dollar, than you will makea profit (but for commissions).
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i found that some banks make a huge difference between selling and buying prices to cut you from making a quick profit . i think this is mean and it only makes profit for the riches who have armies of experts while you stay poor as you are .
it would depend on what the dollar has done in the same time. if the dollar remains stable, you would get more dollars, but if the dollar goes down you would get less and if the dollar goes up, you break even.
You will make money, except for the fees associated with changing currencies.