Today, ВЈ1 buys $2, would it be a good idea to buy a few hundred dollars and make a profit when it drops?

You should convert to Yen (ВЈ1=239 Yen), then go to China/Japan (can't remember who uses Yen, think Japan) and buy "penny" sweets. Then, come back and sell them for pennies! You'll be rich!

This is the essence of currency trading or as it's more popularly known, forex trading. There are a variety of currencies that can be traded against the US dollar and you can start with as little as a $500 account, although the less you start with, the fewer opportunities you'll be able to take advantage of.

Currency trading takes place at a currency trading firm or dealer. Trades are usually not held overnight, since interest is charged on the difference. Currencies are traded in lot sizes, typically of 10K units, and are operated on margin. Margin is earnest money deposited with your dealer and allows you to put up a fraction of the actual value of the lot. To use a familiar comparison, imagine putting up $1000 to own a $100K house. By leveraging your money, you are able to lay out a mere 1% to become the owner of a $100K asset.

Currency trading firms typically charge what's known as a spread, usually 2-3 pips (a pip is the minimum amount by which the currency changes value), and is much like a commission.

Trading the cash (or spot) market can be a profitable way of operating the values of various currencies, but the leverage offered can make it an extremely risky proposition. Your question indicates that you have a fairly long-term view of the strength of the pound vs. the dollar, and I would recommend you take a look at using futures contracts on the currencies.

A futures contract is the promise to take or make delivery on a particular item of a specified quantity and grade at a pre-determined time for a negotiated price. It seems you're confident that the pound may drop in value in the future, so you would offer to sell the pound (that is, buy a short position) in a future month so that when its value drops you can buy it back at a cheaper price, thus profiting off its decline. The currency futures is also a leveraged vehicle, and requires margin to operate, usually more than is required in the spot market.

For more information on how you can utilize the spot currency and currency futures, feel free to contact me at Liverpool Trading Company at 1.800.580.8718 or e-mail us at info@liverpoolgroup.com for a free book on forex trading.

How do you know the exchange rate will change in your favour?
Besides this, the charges will kill you.
The currency game is not for small time amateurs.

I would probably invest that money in a time machine so you could skip around to various points in history and apply your assets judiciously. Otherwise you are just speculating.

people trade in currency and it is a good way to make money but you need to buy a lot for it to be worthwhile and be able to wait until the exchange rate returns to normal, so for a few hundred it is probably not really worth it.

Definetly but you neeed to buy lots ,over time the pound and dolar has always done this ,it will in the future go back to a dollar to apound or near that ,then sell.
or you could buy shares in dollars (blue chip ) then you would not only benefit from the exchamnge rate but alos (hopefully a rise in your share price.

It'd be a good idea to start doing all your shopping online from US stores!

No :::!!!!! buy a property in the USA , plenty of renters there <<<<<< i am

You might have a long wait!

Sounds good m8 ,but you'll need to find a place that doesn't charge commision ,as ВЈ1 usually gets you $1.95 ,it aint alot of difference really ,unless you have thousands of ВЈВЈВЈВЈ's to invest in the $$$$'s ,good luck though dude

Yes, but you are gambling on 2 things:

1. It will drop

2. It will drop below the amoun that the banks will buy it at

more english people.

Your best bet would be to leverage your money via buying the dollar if that is what you choose on the forex (currency) Market. Why because with a few hundred you can control as much as 100,000 or another term purchase one unit. Banks and countries trade on the forex daily to bolster their positions. I trade in the forex with other investors to bolster my position and leverage and hence I suggest if you want to make money buying or selling a currency join an investment club. The club I am in makes us an average return of 5.3% monthly which is a pretty good return by any standard. I would not recommend that you purchase a currency out right as the markets can change on a moments notice. If you would like more information write to me at billone44@hotmail.com

dont you mean, if it drops?

If you want to wait that long........LOL

The American dollars are only worth 40 cents as it is!

And under Bush it will get much, much lower befor it is all over!

Go where you can get the most for your buck!

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