Playing with currency £ to € and back

System

Brilliant info verybigchris.

Yeah to be honest it isn't something that I'm gonna try to make thousands out of.

But if I can say do a transfer 4 times a year that might make me 400-500 quid.

I'm not trying to get rich but if I could get my holiday paid by simply moving my money it's worth it.

It's one of those where I either make small or lose small which I'm happy to try. As thing stand I need the rate to go to at least 1.15 to make anything worthwhile and then hope for a drop back down to 1.11-12 ish

Guillermo_Miguel

Is it a simple case of leaving the funds in CurrencyFair or TransferWise, just setting to auto-buy at a certain price?

I'm quite interested in doing this with a small sum of money whilst the GBP/EUR rate is quite volatile. Netting £60/year (through 4 or 5 transactions) from £1000 is 6%, so better than any savings accounts on offer.

Am I missing anything?

Linton

Guillermo_Miguel wrote: »

Is it a simple case of leaving the funds in CurrencyFair or TransferWise, just setting to auto-buy at a certain price?

I'm quite interested in doing this with a small sum of money whilst the GBP/EUR rate is quite volatile. Netting £60/year (through 4 or 5 transactions) from £1000 is 6%, so better than any savings accounts on offer.

Am I missing anything?

Savings returns are guaranteed. As explained previously, with this scheme there is a not insignificant risk that you could lose money. In general better returns imply higher risk.

Gambler101

frannyj543 wrote: »

Would I put 5k to either win 10k or 0. No.

But would I risk 5k to either get £5100 or £4900. Yes as I don't have a rush and can be patient and I can afford to lose £100 and put it as a lesson learnt.

I can have the amount sitting a while if needs be. Just seems easy obviously you need patience but it's not like it's something that is all duck or no dinner.

Just bet £100 on red or black, much easier and same chances.

System

Would disagree when that wheel spins you know your odds and you can't decide when to hold and when to fold.

With buying currency you can wait 6 months if you feel there's a chance. It's all a gamble but it's one you can monitor. It's a bet small lose/win small but you can cash out if needed.

Guillermo_Miguel

Linton wrote: »

Savings returns are guaranteed. As explained previously, with this scheme there is a not insignificant risk that you could lose money. In general better returns imply higher risk.

I understand that, but any losses are limited, generally speaking.

My question was whether the stated method was the best way of trading the currency.

verybigchris

frannyj543 wrote: »

But would I risk 5k to either get £5100 or £4900. Yes as I don't have a rush and can be patient and I can afford to lose £100 and put it as a lesson learnt.

Why do you think only 2% of your capital would be at risk?

frannyj543 wrote: »

With buying currency you can wait 6 months if you feel there's a chance

Why do you think you'd be stuck holding a negative position for only 6 months?

frannyj543 wrote: »

As thing stand I need the rate to go to at least 1.15 to make anything worthwhile and then hope for a drop back down to 1.11-12 ish

Why have you picked that as the range? Are you aware that Dec 2018 futures are currently trading at around 1.098 (largely due to UK inflation being double that of the Eurozone)? What's your plan for when rates drop out of the 1.15-1.11 range and don't return?

darkidoe

frannyj543 wrote: »

Brilliant info verybigchris.

Yeah to be honest it isn't something that I'm gonna try to make thousands out of.

But if I can say do a transfer 4 times a year that might make me 400-500 quid.

I'm not trying to get rich but if I could get my holiday paid by simply moving my money it's worth it.

It's one of those where I either make small or lose small which I'm happy to try. As thing stand I need the rate to go to at least 1.15 to make anything worthwhile and then hope for a drop back down to 1.11-12 ish

Would be very interested to keep hearing how you are doing on this endevour. I suppose if you understand the risks as well, then it's not unreasonable to try it for the potential reward.

PeacefulWaters

Sterling devalued by around 20% on the Brexit vote IIRC.

That's certainly more than a 2% loss. Or gain!

System

As I said it's just an idea.

It's not something I am trying to steal a living from. I'm also not thinking of holding onto currencies too long.

In the space of a month the rate can fluctuate by 0.02-0.03. I have seen 1.11 ish on offer and close to 1.13 on offer.

I live in Spain so it's not like if I'm stuck with Euros in in trouble and likewise I be back in the UK often so again I'm not sitting with dead money either that I can use.

I'm been living in Spain 1 year and I have seen the rate fluctuate from 1.24ish to 1.08. In 12 months. It is now up to 1.12ish. If which is a big if it was to go to say 1.16 I could buy euros with the hope it goes back down to 1.11ish.

It could easily continue to rise to 1.20. It's all about watching ans monitoring the rate and having the luck when to hold of and when to transfer. But you'd only have to get it right once to make more than the banks are offering. Doesn't mean I will get it right buy any investment has an element of risk