Greek Financial Crisis

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bizzaro said:
That's OK if you're a multi billion of million £ company. i.e. Large.

Go and see what the commission recommendations on micro/small and medium sized SME businesses say.

Medium sized companies aren't that large.

Hedged currency exchange isn't appropriate for all businesses.

Particularly when we're supposed to be part of a European "common market" and therefore supposed to have CHEAPER business costs.
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common market(trading area) is what we should have bizzaro, not the rats nest we have now
 
bizzaro said:
That's OK if you're a multi billion of million £ company. i.e. Large.

Go and see what the commission recommendations on micro/small and medium sized SME businesses say.

Medium sized companies aren't that large.

Hedged currency exchange isn't appropriate for all businesses.

Particularly when we're supposed to be part of a European "common market" and therefore supposed to have CHEAPER business costs.
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You can hedge any amount large or small in the spread betting market (IG Index or City Index for example) at almost minimal cost mate.
 
bizzaro said:
Yes but you have to employ someone to administer this. i.e. at cost
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It would take you 5 minutes to do it.

For example I know I am going to receive € 50,000 in Euro's this year from my European clients. It's Jan 1st and the exchange rate is 1.2888 so that's worth £38,819. I fear that the Euro is going to weaken, so I short the Euro with a €50,000 spread bet EUR/GBP @0.7763.

Today I receive my Euro's from my client but with the exchange rate at 1.407 it is only worth £35,536 a loss of £ 3,282.

However I close out my short spread bet @0.7113 giving me a profit of £3,250 on the trade.

Net result - a cost of £32

Anyone can do it for any amount.
 
the esk said:
It would take you 5 minutes to do it.

For example I know I am going to receive € 50,000 in Euro's this year from my European clients. It's Jan 1st and the exchange rate is 1.2888 so that's worth £38,819. I fear that the Euro is going to weaken, so I short the Euro with a €50,000 spread bet EUR/GBP @0.7763.

Today I receive my Euro's from my client but with the exchange rate at 1.407 it is only worth £35,536 a loss of £ 3,282.

However I close out my short spread bet @0.7113 giving me a profit (0.7763-0.7113 x 50,000) of £3,250 on the trade.

Net result - a cost of £32

Anyone can do it for any amount.
Click to expand...

But the 50k bet is capital tied up till the Euros arrive right? Or is my ignorance of all things gambling, (which it sort of is), really showing me up now?
 
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