When do carry trades work? Carry trades work best when investors feel risky and optimistic enough to buy high-yielding currencies and sell lower-yielding currencies. It’s kinda like an optimist who sees the glass half full. While the current situation might not be ideal, he is hopeful that things will get better. The same goes for carry trade. Economic conditions… Continue reading Know When Carry Trades Work and When They Don’t
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What is a Currency Carry Trade?
In the forex market, currencies are traded in pairs (for example, if you buy USD/CHF, you are actually buying the U.S. dollar and selling Swiss francs at the same time). You pay interest on the currency position you SELL and collect interest on the currency position you BUY. What makes the carry trade special in the spot forex… Continue reading What is a Currency Carry Trade?
What is the Carry Trade?
Did you know there is a trading strategy that can make money if the price stayed exactly the same for long periods of time? Well, there is and it’s one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe! It’s called the “Carry… Continue reading What is the Carry Trade?
Summary: Trading the News
When trading the news, you can either have a directional bias or a non-directional bias. Here are some other things to keep in mind when news trading: When you have a directional bias, you are expecting the price to move in a certain direction, and you’ve got your orders in already. It is always good to… Continue reading Summary: Trading the News
How to Trade News Using Straddle Trade Strategy
What if there was a way to make money quickly even if you had no idea whether the market would move up or down? It’s possible as long as there is sufficient price volatility. And when can you get this volatility? When news like economic data or central bank announcements is released! The first thing to… Continue reading How to Trade News Using Straddle Trade Strategy
How to Trade the News With a Directional Bias
Let’s now see how to trade the news with a directional bias in a trading scenario. Let’s go back to our example of the U.S. unemployment rate report. Scenario: If the U.S. Unemployment Report showed improvement, why did the USD still weaken? Earlier, we gave examples of what could happen if the unemployment report came in light… Continue reading How to Trade the News With a Directional Bias
2 Ways to Trade the News
There’s no single strategy for trading the news. When the news hits, the price tends to spike in one direction or has a muted reaction to the data as traders digest the outcome against market expectations. Knowing this, there are two main approaches to trade the news: a) Having a directional bias b) Having a non-directional bias… Continue reading 2 Ways to Trade the News
How to Trade Forex on News Releases
Before developing a ‘Trade the News” strategy, we have to look at which news events are even worth trading. You want to be able to answer, “Which news releases should I trade?” Forex traders should familiarize themselves with the key event risks that heavily impact the major currencies. Remember that we are trading the news because of its… Continue reading How to Trade Forex on News Releases
Beginner’s Guide to Forex News Trading
As forex traders, it’s important to pay attention to major economic data releases, speeches from government officials, and geopolitical events. Why? Because this information usually reflects the strength of a given economy and may indicate the future direction of a given currency. Trading the news is often difficult and not be suitable for everyone, but the… Continue reading Beginner’s Guide to Forex News Trading
News Makes the Forex Market Move
It’s not enough to only know technical analysis when you trade. It’s just as important to know what makes the forex market move. Just like in the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news!… Continue reading News Makes the Forex Market Move