Like some currency pairs, the US dollar index also has its own technical trend chart. As shown in the figure below: First, please note that the calculation of the dollar index is one day24Hours, one week5Continuously progressing day by day. Meanwhile, the US dollar index measures the relative value of the US dollar to the base100The general value of. For example, the US dollar index is currently ...
What is the US dollar index? If you have conducted stock trading, you are likely familiar with some stock indices, such as the Shanghai Composite Index, Shenzhen Component Index, Dow Jones Industrial Average, Nasdaq Index, S&P500indexDow Jones Industrial Average(DJIA),NASDAQ Composite Index,Russe ...
While you pay low interest rates for the financial instruments you borrow or sell, you are receiving higher interest rate returns on the financial instruments you purchase. Therefore, your profit comes from the interest rate difference between two financial instruments. Carry trading is another way to make money in the foreign exchange market, which does not require buying low and selling high, but rather trading low every day ...
It is very easy to find suitable currency pairs for carry trading according to the standard of carry trading. As long as the following two points are met, we can consider conducting carry trades. Find currency pairs with high interest spreads, find stable currency pairs, or find currency pairs in an upward trend with high yield currencies in the middle of the currency pair ...
When does carry trading work? When traders feel the presence of risk and are confident enough to buy high-yield currencies and sell low-yield currencies, implementing a carry trading strategy works best. It's like an optimist seeing half a glass of water in the glass. Although the current market environment is not very ideal ...
In the foreign exchange market, currencies are traded in pairs. For example, if you buy US dollars/Swiss franc, you are actually buying US dollar currency and selling Swiss franc currency at the same time. As in the example from the previous lesson, you pay interest on the currency you sell and receive interest on the currency you buy. What makes carry trading ...
Do you know that there is a trading system that can profit even when prices remain stable for a considerable period of time? This type of trading system does exist, and it is used by many large institutional currency managers as one of the most popular trading profit channels. It is called 'carry trading'. “I’m tired ...
Now, you already know how to conduct news trading! When trading, please keep in mind the following points: When you are conducting directional trading, you may expect the exchange rate to fluctuate in a specific direction, and you have already placed an order under this expectation. When the news is released, it is known that the market is fluctuating in a certain direction ...
If there is a way to quickly make money, even if you don't know if the market will rise or fall?As long as there is sufficient price volatility, this is possible. When will this fluctuation occur?When economic data or central bank announcements are released!The first thing we need to consider is what type of news we need to trade. In this department ...
Let's return to the example of the unemployment rate in the United States. Earlier, we explained what could happen if the data is consistent with or slightly better than expected. Now, assuming there is an unexpected decline in data, what impact will it have on the US dollar? One possible trend for the US dollar is a decline. what, ...
There are two methods for trading news:1Directional transactions2Non directional trading, directional trading, directional trading means that once a news report is released, the market will fluctuate in a specific direction. When we are looking for trading opportunities in a certain direction, we know what factors in the news report are causing the market ...
Before we find news trading strategies, we need to know which news events are worth trading. Remember, we trade news because market volatility increases significantly after the news is released, so naturally we only trade the news that is most likely to cause market volatility. Although the foreign exchange market is sensitive to different ...
Why do we need to conduct news transactions? The simple answer is, 'In order to achieve greater returns!' However, more strictly speaking, as we discussed in the previous lesson, news is a very important component of the market because it has the potential to drive market volatility. When there is news release, especially important news ...
When you trade, just knowing technical analysis is not enough. It is equally important to know what factors drive market volatility. Behind trend lines, double tops, and head and shoulder shapes, there are fundamental driving forces. This force we call news!To understand the importance of ...
Are those thousand point trend trends really exciting to you? Based on ourCFTCBefore conducting trading analysis, please remember that this situation is only when the report shows a perfect reversal signal in the market. It is best for us to identify the reasons why reversal may occur. Is the economy thriving? Or ...
![[Summary] market sentiment](data/attachment/portal/202303/02/163325kovxx4xv399886vc.jpg.thumb.jpg)
