Trading the Dollar for a Novice

Dopple

I've asked this question before but perhaps in a different way, but am still unsure of what do, so if anyone has been in a similar situation and can help I would be grateful.

I have to keep a float of around $30-40k in US dollars for Sportsbooks purposes but am concerned about the weak dollar. I've joined Tradefairs demo account and to hedge the dollar it seems that I need to "buy" the dollar, so if the dollar becomes weaker I lose on the Sportsbook float but I win a Tradefair (when I open a live account).

I basically want to "win" about £1200 at Tradefair if the dollar gets to about $1.80 early next year but unsure what sort of size "bet" to place.
Advice please?

gozomark

you already own $, so surely you would need to "sell", not "buy" the dollar to hedge it ??

Dopple

That's what I thought but after playing about with Tradefair Demo I realised I needed to "Buy". For example I bought today at 1.6587. Now its 1.6575.
So the dollar is slightly stronger against the Pound than it was, which is good for my Sportsbook dollars, but I'm down slightly on the demo account.
But vice-versa if I was losing money on my Sportsbook dollars I would be winning on Tradefair.
his is what I want in cause the dollar goes belly-up but I just don't know how to judge how much I need to trade.

gozomark

you are buying £, selling $

Dopple

Yes, I think you are right!

RayWolfe

Dopple, I think it may be better if you took up some other pastime before you start real trading!