Introduction to the Carry Trade

In this article we’ll cover a non-directional trading strategy that has been popular among banks and hedge funds, yet is lesser known among retail traders. The strategy most famously used the Japanese Yen in the mid 1990’s and again in 2004-2008. A drop in forex market volatility in 2019 is bringing the carry trade back … Read more

James Chen: Multiple Time Frame Trading in the Forex Market

Learn from James Chen, CTA, CMT, how to trade Forex using a high-probability approach that utilizes multiple chart time frames. Identify the trend on the long-term, watch for a pullback on the medium-term, and trade the breakout on the short-term. James Chen is a highly-experienced trader and analyst, currently Director of Technical Research and Education … Read more

FX Rollovers

Rollover describes the process where the settlement of an open trade is rolled forward to another value date. In the Forex Market trades must be settled within two business days. However, open positions can be swapped forward to the next settlement date. Normally, open positions are automatically rolled forward. The interest rate for such a … Read more

Indicators that most influence the USD

Indicators that most influence the dollars value: 1. Employment Report Importance: Highest.Published by: Bureau of Labor Statistics, U.S. Department of Labor.Frequency: Monthly.Release Time: First Friday of the month at 8:30 ETWeb: stats.bls.gov/news.release/empsit.toc.htm Market Reaction: Event Fixed Income Equities Dollar Payroll Employment Up Bond Market Down Stock Market Up Dollar Up Unemployment Rate Up Bond Market … Read more

Plaza Accord and the Devaluation of the US Dollar

Methods of regulating the foreign exchange market – such as fixing currency values to a commodity such as gold, or setting maximum exchange rate fluctuations had proven to too rigid. After the regulatory mechanisms- such as the gold standard, the Bretton Woods Accord and the Smithsonian Agreement – were no longer in place, the currency … Read more

Bretton Woods

The Bretton Woods Accord was established in 1944, towards the end of World War II. The United Nations Monetary Fund convened in Bretton Woods, New Hampshire, with representatives from the United States, Great Britain and France. The Bretton Woods Accord established the policy of pegging currencies against the U.S. dollar in order to stabilise the … Read more

Choosing a Forex Broker

The forex market is the largest market in the world, 1.9 trillion traded daily and unregulated – this last adjective is an often repeated warning, but what does it mean for you, the forex trader? When a forex broker offers guarantees on execution and account safety, can they really back this up? The Commodity Futures … Read more

Automated Trading Systems and the Forex Market

By Dan Blystone As the editor of a website focused on trading and investing I try to keep track of industry related trends and the hot topics of the moment. Notably, the combination of the forex market and automated trading systems has generated a massive hive of interest online. In this article we’ll cover the … Read more

Asian Currency Crisis

A financial crisis that started in July 1997 in Thailand, and affected currencies, stock markets, and other asset prices of several Asian countries, many part of the East Asian Tigers. The Thailand Baht was devalued by as much as 48%, dropping to close to a 100% fall by New Year of 1998. The Indonesian Rupiah … Read more