Hi, I am brand new to this forum and FX ... so please be kind to me
I have done a search on this forum but could not easily find what I was looking for.
I have (a high 6 figure in) AUD online savings and would like to find a way to cover the risk of a weakening AUD against the USD at or until a certain point in the future.
Can someone recommend a credible Australian based broker who sells foreign currency options to secure AUD against a drop against the USD?
So this is what I mean:
Basically an option that gives us as buyers the right, but not the obligation, to enter into a foreign currency transaction at a pre-determined exchange rate (“strike price”) on a pre-determined date in the future (“expiry date”). Or, if possible (not sure if this exists) the right to do so at any point DURING a pre-determined time frame.
Say: I want to have the option to trade AUD300,000 for USD300,000 on 1st June 2014 - if the actual exchange rate would not be in my favour then!
How much would it cost to buy this option for instance? I have no idea...
I know about Ozforex who seem to have a solid reputation. The complication for me is that I am currently overseas and I am not sure when I will be back in OZ, so I might not even be able to open any account until I do.