What is a dual currency deposit?
Double -currency deposit is a fundamental market fund combined with the possibility of foreign exchange deposit. This gives the investor a potential advantage, except for the risk of changes in the wider foreign market. There are several different options for dual monetary deposits. They can range from year to one year to one week. This kind of investment is also known as a double currency device. If it does not reach a predetermined strike point, the funds will be paid in the original currency. When the investment reaches this strike point, the funds will be transferred to a foreign currency, while the increased return paid in the original currency. A few days before the fund's maturation, the money administrator will usually contact the investor to reveal how the investment will be processed.Eturns based on the current rate. The primary risk of double currency deposit is the chance of losing money when the locked rate is lower than the current market. This type of investment can be returned to the original or foreign currency.
One of the main advantages of dual currency deposit is that it offers a chance for much higher returns than usually seen in low -income fund, such as the cash market. This is a compensation for the additional risk that the investor will undergo by investing in the foreign market. The investor can also improve the chances of higher revenue by planning the conversion of funds in the best time. This flexible situation is known as variable terms. In essence, the investor can decide when to transfer the risk against the risk of tolerance.
Some investors will use a dual currency deposit to make cash profits and at the same time turn it into a numbered foreign currency. For example, profits achieved to invest in their own country of an individual may be used in an agreed foreign country in an investment. One of the benefits of profit management is that there are no currency conversion fees. There is also the potential that the exchange rate will be advantageous for the investor.
manyInvestors who use a double currency deposit already have more than one type of currency in their portfolios. Investments can also be used to increase the diversity of the portfolio. This type of investment usually has a relatively high minimum amount of deposit.