I hate starting a new thread to respond to posts, but this one is a technique to use the currrenct market to take advantage of your sentiment on the direction of various commodity markets.
First , what currencies do well when gold prices shoot up,
two come to mind AUD (Australian dollar) and ZAR (south african rand) the reason is simple, these two countires produce gold and it is a significant part of there economic makeup.
so if you feel gold is going up you can find a broker such as forex.com, fxsol.com, fxcm.com to buy those currencies on a margin.
(The only broker I know you can buy ZAR is GFTforex, but the spread on the USD/ZAR pair is huge so be very careful.)
If you feel the stock market is going to head south even more , then a good pair to short is USD/JPY
Soaring Oil prices caused the Canadian dollar to strenthened heavily last year.
anyway do your research take this idea and run with it, this is all well known and well documented. The advantage over trading in the commodites market directly is the lower commisions in the currency market, and much more liquid and trades around the clock.
At the very least you can use it to hedge your position, if I had more capital I would trade directly in the commodities market also to hedge some of my posiitons and cut my risk drastically while virtually securing profits.
First , what currencies do well when gold prices shoot up,
two come to mind AUD (Australian dollar) and ZAR (south african rand) the reason is simple, these two countires produce gold and it is a significant part of there economic makeup.
so if you feel gold is going up you can find a broker such as forex.com, fxsol.com, fxcm.com to buy those currencies on a margin.
(The only broker I know you can buy ZAR is GFTforex, but the spread on the USD/ZAR pair is huge so be very careful.)
If you feel the stock market is going to head south even more , then a good pair to short is USD/JPY
Soaring Oil prices caused the Canadian dollar to strenthened heavily last year.
anyway do your research take this idea and run with it, this is all well known and well documented. The advantage over trading in the commodites market directly is the lower commisions in the currency market, and much more liquid and trades around the clock.
At the very least you can use it to hedge your position, if I had more capital I would trade directly in the commodities market also to hedge some of my posiitons and cut my risk drastically while virtually securing profits.
