Comments on: Currency Can Kill Your Movie http://filmclosings.com/2011/05/currency-killed-my-movie/ Innovation, Information, Expertise Sat, 04 May 2013 17:19:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Tom Lassu http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-15800 Tom Lassu Sat, 16 Jul 2011 09:46:02 +0000 http://filmclosings.com/?p=1987#comment-15800 In Forex, just like in other financial markets, there are many unscrupulous brokers and firms. Similar to finding a dentist, use your friends and connections to find a service provider you can trust. Don't leave this for the last minute, develop a relationship, and follow the source over time. Keep in mind that the longer you keep funds invested, the more likely it is to grow. A good example is this live curve: it shows the growth of $2K invested on Feb 1st, 2011. http://qxxlalpha.mt4live.com. We might share more information in the future with Synergy members (http://filmsynergy.com). Regarding ethical concerns, this is an issue of personal opinion and preference. Similar to eating meat, waging war, driving gasoline cars, or (not) believing in supernatural entities, One can spend time and energy trying to convince others, but then the film might never get made... Let me share a good quote from the SEC (Forex is a related category): "...day trading is neither illegal nor is it unethical..." In Forex, just like in other financial markets, there are many unscrupulous brokers and firms. Similar to finding a dentist, use your friends and connections to find a service provider you can trust. Don’t leave this for the last minute, develop a relationship, and follow the source over time. Keep in mind that the longer you keep funds invested, the more likely it is to grow.

A good example is this live curve: it shows the growth of $2K invested on Feb 1st, 2011. http://qxxlalpha.mt4live.com. We might share more information in the future with Synergy members (http://filmsynergy.com).

Regarding ethical concerns, this is an issue of personal opinion and preference. Similar to eating meat, waging war, driving gasoline cars, or (not) believing in supernatural entities, One can spend time and energy trying to convince others, but then the film might never get made…

Let me share a good quote from the SEC (Forex is a related category):

“…day trading is neither illegal nor is it unethical…”

]]> By: Jeff Steele http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13413 Jeff Steele Mon, 23 May 2011 16:59:41 +0000 http://filmclosings.com/?p=1987#comment-13413 Sad but true. Shooting in the US alleviates this issue. Sad but true. Shooting in the US alleviates this issue.

]]> By: Jeff Steele http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13412 Jeff Steele Mon, 23 May 2011 16:53:03 +0000 http://filmclosings.com/?p=1987#comment-13412 Sage advice. Sage advice.

]]> By: Jeff Steele http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13411 Jeff Steele Mon, 23 May 2011 16:52:38 +0000 http://filmclosings.com/?p=1987#comment-13411 Thank you Florian for clarifying my point: the 10% cost I referenced above is for the margin deposit, not for the forward contract. Thank you Florian for clarifying my point: the 10% cost I referenced above is for the margin deposit, not for the forward contract.

]]> By: Corey Hanson http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13337 Corey Hanson Sat, 21 May 2011 13:49:46 +0000 http://filmclosings.com/?p=1987#comment-13337 While it may be effective, you should consider the moral implications about investing in Forex. Money does not get created out of thin air and because this type of trading does not actually produce anything, it has to come from somewhere. Forex trading does not make money, it takes money. At the end of the day one has to ask themselves if they want to supplement their income through a parasitic action done on foreign economies. While it may be effective, you should consider the moral implications about investing in Forex. Money does not get created out of thin air and because this type of trading does not actually produce anything, it has to come from somewhere. Forex trading does not make money, it takes money. At the end of the day one has to ask themselves if they want to supplement their income through a parasitic action done on foreign economies.

]]> By: John Hollands http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13327 John Hollands Sat, 21 May 2011 06:56:44 +0000 http://filmclosings.com/?p=1987#comment-13327 Years ago, dealing with U.S. Studios as investers, we would know that we had (say) 6mil coming in in 12 months, and 15mil coming in eight or fourteen months and so on. These dates were locked in and set against milestones in the production process. We would offer to sell US dollars ahead of time, when production started, locking in a rate.(As in, "we'll sell you ten million U.S. dollars in October 2012 if you will pay us XYZ at that time") When I asked the Business Affairs Manager if he thought we were giving away the possibility of a currency gain, his answer was "first, it can as easily go up or down and two, we're Producers, not speculators" I thought that a pretty good stance. We then focused on making a good film rather than be distracted by outside issues. Get your budget right, allow sensible exchange rates, hedge right away against future money and get on with the movie. Years ago, dealing with U.S. Studios as investers, we would know that we had (say) 6mil coming in in 12 months, and 15mil coming in eight or fourteen months and so on.

These dates were locked in and set against milestones in the production process.

We would offer to sell US dollars ahead of time, when production started, locking in a rate.(As in, “we’ll sell you ten million U.S. dollars in October 2012 if you will pay us XYZ at that time”)

When I asked the Business Affairs Manager if he thought we were giving away the possibility of a currency gain, his answer was “first, it can as easily go up or down and two, we’re Producers, not speculators”

I thought that a pretty good stance. We then focused on making a good film rather than be distracted by outside issues.

Get your budget right, allow sensible exchange rates, hedge right away against future money and get on with the movie.

]]> By: Harold http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13312 Harold Fri, 20 May 2011 22:04:24 +0000 http://filmclosings.com/?p=1987#comment-13312 What are the risk of investing in a managed Forex account? What are the risk of investing in a managed Forex account?

]]> By: Florian Dargel http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-13196 Florian Dargel Wed, 18 May 2011 11:18:45 +0000 http://filmclosings.com/?p=1987#comment-13196 On top of that (sensible) advice, you should also try to borrow/fund in the currency of your collateral. For instance, it is tempting to try and get your funding in say GBP because that is what the production is gong to spend. However film sales are mostly factored in USD so if you expect to repay your investors in something other than USD it will leave you exposed on the backend/repayment side later. However that UK tax credit is in GBP so here the funding should be in GBP. So you would be best off to get your investors to fund in the currency they will be repaid in, and use the tools mentioned to protect your production budget. PS: The cost of hedging should be significantly lower than 10%, but you generally need a min. 10% margin deposit if you contract a forward. You could however lose that if the film doesn't close and you cannot deliver the currency for the forward contract and the currency moved against you in the meantime. So I wouldn't recommend doing a forward *before* you have a signed contract for the appropriate funding. On top of that (sensible) advice, you should also try to borrow/fund in the currency of your collateral. For instance, it is tempting to try and get your funding in say GBP because that is what the production is gong to spend. However film sales are mostly factored in USD so if you expect to repay your investors in something other than USD it will leave you exposed on the backend/repayment side later. However that UK tax credit is in GBP so here the funding should be in GBP. So you would be best off to get your investors to fund in the currency they will be repaid in, and use the tools mentioned to protect your production budget.

PS: The cost of hedging should be significantly lower than 10%, but you generally need a min. 10% margin deposit if you contract a forward. You could however lose that if the film doesn’t close and you cannot deliver the currency for the forward contract and the currency moved against you in the meantime. So I wouldn’t recommend doing a forward *before* you have a signed contract for the appropriate funding.

]]> By: Jeff Steele http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-12936 Jeff Steele Fri, 13 May 2011 01:08:02 +0000 http://filmclosings.com/?p=1987#comment-12936 @ Michael I don't recommend using your contingencies for currency issues. Allocate ahead. @ Michael I don’t recommend using your contingencies for currency issues. Allocate ahead.

]]> By: Tom Lassu http://filmclosings.com/2011/05/currency-killed-my-movie/comment-page-1/#comment-12924 Tom Lassu Thu, 12 May 2011 19:59:35 +0000 http://filmclosings.com/?p=1987#comment-12924 Even if not shooting abroad, some of the film's funds should be invested in a (managed) Forex account. A competent trader can produce a net gain of 7% per month. As it often takes a long time to raise the funds, the seed money can grow significantly during this time. Even if not shooting abroad, some of the film’s funds should be invested in a (managed) Forex account. A competent trader can produce a net gain of 7% per month. As it often takes a long time to raise the funds, the seed money can grow significantly during this time.

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