Foreign exchange bag holdings are the main way to hedge foreign exchange exposure, according to a new report.
Foreign exchange exposure is the difference between the amount of money you have and the amount you need to pay out of pocket.
Foreign currency assets are used to fund the purchase of goods and services.
Foreign currencies also are used for international travel, international investment and other transactions.
You need to hedge your foreign currency exposure through foreign exchange, according the report from the Australian Taxation Office (ATO).
Foreign exchange strategies and foreign exchange bag savings are used in about 80% of the Australian portfolio.
However, you must be careful not to put more money into your foreign exchanges portfolio than you can afford to lose.
There are two types of foreign exchange strategies: foreign exchange fund (FET) and foreign currency fund (CFG).
FET strategies are used by pension funds, savings plans and IRAs.
They use the money they make from investments to pay for their expenses.
They also buy foreign exchange contracts to hedge their foreign exchange risk.
CFG strategies are generally used by banks and financial institutions.
They pay a percentage of their earnings to fund their foreign currency strategies.
The report said you need an FET strategy that is at least 40% of your portfolio and at least 30% of assets.
You also need to be aware of the risk of loss when trading foreign currency, including interest rate risk, currency fluctuations, currency appreciation and foreign currencies being traded on foreign exchanges.
It also recommended that you keep your foreign cash balances in cash.
The Australian Tax Office says foreign exchange savings accounts account for $15.5 trillion of your foreign asset portfolio.
You can find out more about foreign exchange funds here.