What is Currency Exchange?
Currency exchange is when you invest in one country's currency, and pit against another country's currency. An example of this is the AUD/USD. With different economic conditions affecting one currency against another it is very often used to hedge a portfolio against potential losses. This form of investing is extremely difficult and should only be done by a professional in finance industry.
Why use Currency Exchange?
Currency Exchange can be used in your portfolio to provide a level of hedging. This means to protect your portfolio from a change in the value of the Australian Dollar.