URICM - UDAYBHANSINHJI - Regional Institute of Cooperative ...

The era of "friendly globalism" is over. It's been exposed for what it alwaysreally has been - a series of negotiations. Now, however, the niceties anddecorum that were always displayed to the outside world are gone, havingbeen replaced by hard-ball/take-no-prisoners economic tactics.In that kind of an environment, however, some very interesting profitopportunities can crop up. We'll keep an eye peeled for those profit plays in thefuture. For now, here are the best ones to consider.Action to Take: In my opinion, the currency markets have become toodangerous for retail FX investors to navigate using the widely accepted,"normal" FX arrangements. After all, an FX account can have 50-1 or even100-1 leverage.Due to the strategic interventions central banks are engineering on an all-tooregularbasis; it is now safer to hold your currency exposure in your regularbrokerage account. One way to do this is via exchange-traded funds (ETFs).If the currency you are most interested in trading is not this list of pairs, you canalso buy options on futures for most FX pairs. This would give you theexposure to your favorite pair that you seek - using futures leverage withouttaking on the margin risk.Finally, if you are unable to find the pair you like, or are open to levels of riskabove what is warranted for the typical retail investor, the FX market awaitsyour decision to stand in front of a government printing press that's been shiftedinto overdrive.Source: http://moneymorning.com/2010/10/05/currency-war-2/- Mr. Vikrant ValaFaculty, URICM, GandhinagarE-URICM 19