Posts Tagged ‘foreign currency’

Forex Answer

Friday, November 2nd, 2007

Answer $90.81

Lesson 1

Always double check the teller’s ability to count.  Last time I checked a $50 bill plus a $5 bill equals $55….even if it IS Australian currency.

Lesson 2

The spread between what they buy foreign currency for and what they sell it for is much larger than what is quoted on the the electronic exchanges.

Conclusions

I will accept foreign currency as a tip.  However, if I am accepting it as payment for lapdances, I will charge a bit of a premium on certain currencies to overcome the bid/ask spread at the exchange.  As you can see, even though the Canadian Dollar and Australian Dollar are increasing in value relative to the American Dollar, it still isn’t a 1:1 ratio at check-out.  I will accept Euros at a 1:1 ratio…have to look up British pounds, I’m pretty sure they are 2:1.

Avalon’s Foreign Currency Tips

Thursday, November 1st, 2007

I stopped in at the Currency Exchange at Sky Harbor this afternoon.  There were A LOT of foreigners at the SEMA convention.  I didn’t realize how huge the automotive aftermarket parts industry was!  I like getting tipped in foreign money.  Its pretty.

How much do you think the following is worth in American Dollars?

55 Australian Dollars

100 Danish Kroner

20 Canadian Dollars

20 Netherlands Antillian Guilder

10 Euros

The answer tomorrow.  The person who guesses the closest will receive a gift package complements of Avalon’s Panty Store and Used Strippergear Emporium. (just kidding)

Forex

Friday, October 26th, 2007

I took my first introductory Forex class last night. Forex is short for foreign exchange. Did you ever go someplace (like Mexico during Spring Break 1995) where the US dollar is stronger than that country’s currency. Everything seems really cheap, so you spend like a king while on vacation?

Well, many people make a living off of trading currencies. Currencies trade in pairs, such as Euro/US Dollar or Yen/US Dollar and it only costs about $200 to get started, and there are NO Commissions charged by my broker, just the spread between the bid and the ask price.


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