I was thinking it would be fun and possibly profitable to speculate on currencies... that is, buy currency and wait for it to appreciate in value, then sell it back. I don't know anything about the stock market and all that, but I did hear that speculating on currency requires one to spend tens of thousands of dollars at a time. I thought about doing it small time, small enough that it doesn't raise big red flags for taxes. So would someone out there know much about how one can do small time currency speculation?
Currency speculation
- Thread starter georgebushmoron
- Start date
I don't agree that it needs huge money to speculate in currency fluctuations. It's like any other investment -- the more money you put up, the more your potential return.
To invest in a currency, you really only need to invest in something that is valued in a currency that you expect to increase in value. For example, if you use US$ to buy a Canada Savings Bond worth $1000 CAD, and then the C$ increases 10% relative to the US$ over the term of your bond, you've made 10% in addition to the interest rate on the bond, provided you cash out the bond in US$.
So, you can really buy anything valued in C$, like a house in Canada, a Canada Savings Bond, or a stock of a Canadian company. If you want to speculate on currency only (ie., currency fluctuation will be the only factor in your investment that varies) you should get a fixed-income investment like a Canada Savings Bond or a GIC. If you buy a house or a Canadian stock, your return will be based on both the appreciation or depreciation of the underlying investment, as well as currency.
As for your tax situation, sorry I don't know anything about US tax laws, but in Canada you would declare any money made or lost on currency fluctuation as a capital gain (or loss), and it would then be taxed at a more favourable rate than interest income or employment income.
To invest in a currency, you really only need to invest in something that is valued in a currency that you expect to increase in value. For example, if you use US$ to buy a Canada Savings Bond worth $1000 CAD, and then the C$ increases 10% relative to the US$ over the term of your bond, you've made 10% in addition to the interest rate on the bond, provided you cash out the bond in US$.
So, you can really buy anything valued in C$, like a house in Canada, a Canada Savings Bond, or a stock of a Canadian company. If you want to speculate on currency only (ie., currency fluctuation will be the only factor in your investment that varies) you should get a fixed-income investment like a Canada Savings Bond or a GIC. If you buy a house or a Canadian stock, your return will be based on both the appreciation or depreciation of the underlying investment, as well as currency.
As for your tax situation, sorry I don't know anything about US tax laws, but in Canada you would declare any money made or lost on currency fluctuation as a capital gain (or loss), and it would then be taxed at a more favourable rate than interest income or employment income.
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currancey trading
Look at what is called the FORX... it trades currancy .. with as little down as a few hundred dollers yuo control thousands ... and play the ups and downs on the five majore US doller ..Canadian doller .. pound ... yen... swiss france... there are a few others in there but .. You make your money on the piont change up or down .... Take a look .. it just mieght be your game. But you could loss big time also ...!!!!
Look at what is called the FORX... it trades currancy .. with as little down as a few hundred dollers yuo control thousands ... and play the ups and downs on the five majore US doller ..Canadian doller .. pound ... yen... swiss france... there are a few others in there but .. You make your money on the piont change up or down .... Take a look .. it just mieght be your game. But you could loss big time also ...!!!!
Forget about currency trading, its worse than day trading, you have to be on the computer 24/7 to make any money and then you get taxed to death. Go to Kitco.com, you can buy silver or gold in a pool account, they send you a letter saying how many ounces you purchased and your not stuck holding the actual bullion. I bought 100 oz of silver in Dec for 9.99/ oz, just sold it for 16.25 last week. NO TAXES. I still have more in the account, but will leave it as I think the market is still on the rise.
No Taxes
On the kitco site, it says it does not report sales transactions to the government. I guess its up to the individual to claim it as a capital gain.I'm sure all the sp's claim all their money too....... right girls
On the kitco site, it says it does not report sales transactions to the government. I guess its up to the individual to claim it as a capital gain.I'm sure all the sp's claim all their money too....... right girls
I made money on the iraq war
I just got rid of all my us currency. End of story. First to Euros, then to CDN.
Not much money but if I hadn't have done anything I'd be pretty pissed by now.
Some banks particularly offshore have accounts designed for currency trading. Unfortunately nobody is probably going to do something as stupid as the iraq war in the near future.
I just got rid of all my us currency. End of story. First to Euros, then to CDN.
Not much money but if I hadn't have done anything I'd be pretty pissed by now.
Some banks particularly offshore have accounts designed for currency trading. Unfortunately nobody is probably going to do something as stupid as the iraq war in the near future.
Probably not as far fetched as it seems. Bush has troops on both sides of Iran right now.georgebushmoron said:
I have a part time job working for a fellow who is a daytrader. Having had a fair amount of success at daytrading, he decided to try currency trading last fall. He did his homework (he really works hard at getting himself up to speed on this sort of thing), used a mock currency trading program for a month to get a feel for it, then finally was ready to take the plunge. Overnight on his first day of currency trading, he lost $25,000. As his accountant later told him (maybe she ought to have mentioned this BEFORE he dabbled), "I have no clients who got rich by currency trading". And she's got a bunch of clients who daytrade and do very, very well. I'm sure there is money to be made at this endeavour, GBM, but it sounds like there are considerably more losers than winners.
You can hardly blame Japan & China for "holding the US hostage", so to speak.... just as your bank holds you hostage for your having a mortgage with them. It's the US gov's fault for debt-financing their increasingly expensive military adventures and boundless Pentagon contracts that go unchecked. It was Prez President Dwight D. Eisenhower who warned of the military industrial complex that would rot the Republic back in '61. Looks like it's come true and the rot is not going to stop anytime soon.craiglist-lover said:
Missing the point
I think this issue is off to left field now,talking politics instead of currency trading,final thought on this issueis this, try what ever you want to try to make a few extra bucks, just don't think of getting millions fast, if you do, get a lottery ticket. I personally think the way to go is precious metal, and have made millions (just kidding) from it. Last bit of advice : only use money that you can lose, don't use rent money or the money you'r saving for your next encounter
I think this issue is off to left field now,talking politics instead of currency trading,final thought on this issueis this, try what ever you want to try to make a few extra bucks, just don't think of getting millions fast, if you do, get a lottery ticket. I personally think the way to go is precious metal, and have made millions (just kidding) from it. Last bit of advice : only use money that you can lose, don't use rent money or the money you'r saving for your next encounter
