Since I live in the United States, I generally transact in USD. So when I withdraw money from my forex account it’s always in USD. But if I think a currency is going to appreciate against the USD, why should I hold my trading account in US dollars? Why not try to boost my forex returns by holding a currency that’s not my base currency?
That’s what I’ve been asking myself lately, and I’ve just now taken action.
Today I moved my entire trading account from USD to Yen in an effort to boost forex returns on top of my normal trading. This is something I’ve been considering doing for awhile, but haven’t pulled the trigger on. If you’ve got a long term view on a currency pair, why not convert your trading capital into that currency while you trade?
Well, there are a couple reasons why you may not want to do this. But there are good reasons for doing it too. In this post I’m going to dive into why I chose Yen and what it could potentially mean for my returns. (more…)