DislikedJacko,
Let's consider that after conducting your businesses one way or another you have made a nice profit and you are now sitting on a $5M cash. Do you get worried about the $ being devalued? In other words... since you made a lot of dollars by selling the dollar would it make sense to convert some of it to Euros?
I am curious because I am sitting on a smaller fortune but it is really what got me into the forex. I wanted to protect my savings and bought EURUSD for the size of my savings. Then I realized the potential of the leverage...
Thanks for a great thread!Ignored
Simple.
Buy a number of Euro contracts to the value of your USD holdings and "leave them in the drawer".
As the USD drops, your Euro contracts increase by the same amount. (Effectively it is a real "hedge").
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