Hi everyone!
Let’s say I buy 1 lot of AUDUSD. Is it possible to arrange (as closure of the trade) to take delivery of the physical AUD and paying up the USD?
Thanks!
Hi everyone!
Let’s say I buy 1 lot of AUDUSD. Is it possible to arrange (as closure of the trade) to take delivery of the physical AUD and paying up the USD?
Thanks!
No it isn’t.
And why would you want to?
It isn’t and why would you want to?
If you are trading sugar on the commodity
market, would you want physical delivery
of tons of sugar you traded? Why?
If you want physical currency, go to your
bank and do an exchange instead. And if you
want sugar, go to your grocery store.
Lookup “Spot FX” on Investopedia.com and I think you’ll find what you’re looking for (currency futures vs. spot fx)
Hi guys,
Thanks for your replies.
If I might elaborate a little:
I have some USD which I wish to convert into AUD at some point. Spot rates from my bank (with my USD) are a far cry from the bid/ask in Oanda. When the time comes, I would like to move my USD into AUD at a rate closer to or at that in Oanda.
Is this even possible?
You cant be leveraged but Oanda will deliver for you.
There is a reason why the spot rates and bank rates are different. In order for banks to have AUD to give you, they have to be bought beforehand because they can’t print it on the spot and give it to you. So in a sense their huge spreads are just protection against market movement (and profit of course).
Most banks in my country charge 1% for handling of physical cash. Electronic money is always easier to manage (as well as the up-to-the-second correctness of the bid/ask), and therein lies the reason for the closer spreads on the spot FX market.
Perhaps you should look at money changers, their spreads seem to be better than banks, although $100,000 USD might be a problem for them.