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mapleleafs
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Joined: August 24th, 2005, 2:13 pm

Commodities currencies going down

August 29th, 2008, 1:58 pm

my boss asked me some remedies/suggestions to help our clients who suffered unrealised loss on holding some commodities currencies like AUD, NZD, GBP......some clients used real money to buy, some used littly money to leverage (margin basis)........i can't think of any good suggestions........can you help?
 
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nazzdack
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Commodities currencies going down

August 29th, 2008, 4:27 pm

Short-sell crude oil and/or gold against them?
 
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ppauper
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Joined: November 15th, 2001, 1:29 pm

Commodities currencies going down

August 30th, 2008, 1:22 pm

QuoteOriginally posted by: mapleleafsmy boss asked me some remedies/suggestions to help our clients who suffered unrealised loss on holding some commodities currencies like AUD, NZD, GBP......call in sick and mail the clients guns ?
 
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mapleleafs
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Commodities currencies going down

August 30th, 2008, 5:34 pm

don't know how to give solutions to clients.......some clients bought AUD at 0.97-0.98.......
 
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KackToodles
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Commodities currencies going down

August 31st, 2008, 7:45 am

Create a special 88888 reserve account to absorb all those unrealized losses. that way, you don't have to run them through the P&L. Then, with that problem out of the way, tell your clients that you are leaving to form your own, new, better firm, and they should come with you because your old firm is no good.
Last edited by KackToodles on August 30th, 2008, 10:00 pm, edited 1 time in total.
 
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daveangel
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Commodities currencies going down

August 31st, 2008, 8:20 am

get them to sell calls on AUD - they can collect some premium
knowledge comes, wisdom lingers
 
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KackToodles
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Commodities currencies going down

August 31st, 2008, 11:35 pm

QuoteOriginally posted by: daveangelget them to sell calls on AUD - they can collect some premium also, margin up and throw some hail mary passes to try and make up the losses. what can it hurt?
 
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fars1d3s
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Commodities currencies going down

September 1st, 2008, 10:16 pm

Cut your losses short, and bail out of losing positions. Meanwhile, look for other opportunities. Just move on, and persevere ....
 
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penguina
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Joined: August 17th, 2008, 11:36 pm

Commodities currencies going down

September 1st, 2008, 11:14 pm

GBP is hardly a commodities currency. Its going down because its economy is going down the toilet.
 
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DominicConnor
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Commodities currencies going down

September 2nd, 2008, 7:46 am

I think the truth is somewhere in between.Although a net importer of energy, British oil fields have a mix that means it exports as well. Same with food.Peak oil production in Britain has been passed, so the contribution of oil to GDP is being hit both ways.However, the British economy is less directly dependant upon imported raw materials, mostly because services are so much more important than manufacturing.Sadly, the services are often financial, which is not as good as it was a year ago.Traditionally, a larger % of British GDP is exported than otherwise comparable countries, and more is imported. If world trade goes down the toilet, Britain is hurt as bad as China would be.
 
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Nashequilibrium
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Commodities currencies going down

September 2nd, 2008, 11:38 am

Well, it seems like your clients money is in my bank account....up 7.5% last month and this month up (Aug)28% in my currency portfolio, i actually shorted AUD exactly around where your clients bought.Anyway to answer your question, its simple.......cut your losses, get out!
 
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Nashequilibrium
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Commodities currencies going down

September 2nd, 2008, 11:41 am

A second point, i think your leveraged clients should have had margin calls by, especially since they were playing the carry trade on aud, nzd, eur/jpy and gbp.
 
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PaperCut
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Commodities currencies going down

September 2nd, 2008, 12:13 pm

How about the old "slingshot?"In AUD, hang on to your currency long. Buy a put underneath the market, and sell two ATM calls, buy two OTM calls. You can hang out here, or even decline a little more, and still make some money. If things turn around and the underlying rallies, you make money. Move to the downside and you are protected. Edit: spelling
Last edited by PaperCut on September 2nd, 2008, 10:00 pm, edited 1 time in total.