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Foreign Exchange Currency Symbols and Indices

Start Using Foreign Exchange Currency Symbols

Foreign exchange currency symbols and indices are used by rating agencies, banks and financial data providers to measure and chart key currency related markets.

Foreign Exchange Currency Symbols and Indices beyond the Popular Pairs

Foreign exchange currency symbols and indices are used in the financial industry. They are essentially markets, ETFs, and indices of all kinds, which track the performance of the underlying currency. Foreign currency trading involves doing a lot on research. Not just on the actual traded pair, but also on all these other indices and related markets. Some of them are also available for trading through CFDs and various instruments. Other symbols are simply market performance measuring indices, defined and provided by financial agencies and banks. They are all useful at one time or another. Because they provide insights into the underlying market, which the main currency pairs may not provide as clearly. Entire forex trading strategies are based on inter market analysis. And part of this analysis involves the study of these derivative foreign exchange currency symbols and indices. Traders are able to infer valuable information from chart patterns which may appear here and there. But not necessarily on the same index all the time. The objective is to trade the underlying currency, but then arises the question, which market exactly? For example the US dollar index (symbol $USD) is an index tracking the performance of the US dollar. Whereas the PowerShares UUP symbol stands for an ETF tracking the bullish performance of the US dollar. Basically, they are all tracking the US dollar currency. And they are all helpful one time or another, for doing analysis on EURUSD, and deciding how to trade this very liquid currency pair. Oftentimes you will find chart patterns on $USD or UUP which may be very useful, and conclusive on direction. While at the same time you may or may not find such patterns on the EURUSD chart. So looking around these symbols and their charts, can help clarify the whole picture and minimize ambiguity. Because EURUSD charts are never very simple. As one zooms in and out on the chart conflicting signals appear. The daily chart on the US dollar index ($USD) does carry a lot of weight, as you are looking on the US dollar against 6 currencies. EURUSD is very large by volume, but still only shows the US dollar against one single currency. Moreover, being a large currency, does not necessarily make that currency a leading one.

Foreign Exchange Currency Symbols and Indices Matter to Swing Traders

Foreign exchange currency symbols and indices matter most to swing traders. Since these do a lot of observations on the daily charts. Patterns such as gaps, divergences, flags and more may be hard to observe on one index chart, and yet be visible on another. Moreover some of these indices and ETFs may provide leading signals over currency pairs. The assumption is that some of these markets are traded in the derivatives and Futures markets also. And some institutional investors make large trades in the Futures markets, before they make more trades in the underlying currency pairs. They also do this with stocks. This strategy of doing half the transaction through the Futures, and the other half shortly after through the underlying market allows them to get an overall better-lower entry price. Because buying all at once does actually make the market move higher in the process. And the reverse is also true for selling. To the small and medium size retail trader this is useful for trading online. Since they can spy on institutional Futures trading activity, and place their own trades early enough, through highly linear CFD contracts. If their observations are correct, the underlying markets will move as expected. And the CFDs will capture the maximum amount of price movement possible, and in the most affordable way! So spying on currency related ETF Futures activity, and trading on the information through CFDs can offer you a head start on the coming trend. Trading the Futures directly is possible but doesn’t make sense, because they are the indicator. And they work as an indicator only because they don’t have linear pricing relative to the market like CFDs have. Which makes CFDs the instrument of best choice for doing the actual trade.

Assessing market activity based on futures and perceived risk is especially useful in commodity currencies. Many currency trading strategies can be improved through such risk analysis. USDCAD for example will definitely move lower should crude oil start rising steadily. And the only immediate risk in crude oil is when it starts going higher, not lower. So USDCAD traders should pay attention to crude oil futures at time of suspicion, where a rally in energy prices is likely to happen. There is an asymmetry here, because risk only indicates one side of the market. If risk premiums were normal or too low, they would be meaningless. But increased risk premiums for crude oil can only mean rising prices, and therefore a falling USDCAD price. Risk premium analysis, when yielding a signal, overrides all other conflicting technical indicators. Commodity currencies have this advantage that traders can exploit. Because commodity supply is finite, and fears of future supply problems lead to surprise rallies.

Foreign Exchange Currency Options and Ideas

Different Foreign Exchange Currency Options

Traders have many foreign exchange currency options to choose. And each currency pair offers a wide range of possibilities, for totally new, cool trading ideas.

Foreign Exchange Currency Options for the Curious Trader

The curious and bold trader always looks at various foreign exchange currency options available. What they want, is to make trading profitable, but also exciting. So that trading doesn’t become a routine, boring task. From a psychological perspective, this makes sense. Since nobody really likes routine jobs. So in order to break all the standard routine, and have a motivating task at hand, traders try new things. The curious trader wants to take some extra risk, initially. So as to test and figure out new trading methods and indicators. Even former losing traders who once had given up trading, due to extreme frustration and big losses, realize the value of curiosity. When these former losing traders come back to the market. They quit most popular trading methods, and search for new ideas. Forex trading can become much better when there is curiosity and innovation involved. And all forex strategies, more or less can be improved, and also checked in more depth. Public opinion and popularity do not matter at all when it comes to evaluating a strategy. Only facts and results matter, as measured through demo or live trading. The trading options are really infinite, and no single trader in the world can figure them all out. And that’s what makes forex trading so exciting. Because not two traders (at least among the curious ones) trade alike. The global forex converter platform allows for all kinds of cool trading ideas. From having nice indicators, to almost risk-less arbitrage trading. Foreign exchange currency options and ideas are very interesting. And this helps break classic trading routine and take trading more seriously.

Foreign Exchange Currency Options and Protecting Your Strategy

Generally, nobody can figure out or steal your unique idea, not even your broker can! Because really good trading relies on analytical skills and indicators which are not revealed through your trading statements and actions. Creative traders have some very good foreign exchange currency options to choose from. And their trading is more scientific than classic trading or economics. Even traders who use fundamental analysis, in an efficient way. They too know that the whole task of figuring market direction out, amounts to nothing more than a scientific problem. Traders with a basic background in physics, and having some common sense. Are more capable of understanding global economics and events than many economists are. And then when it comes to numerical analysis, once again, physics is a more inclusive science than any other science. Some trading strategies require extensive analysis and manipulation of market data, beyond the ordinary. And if they are successful at predicting the financial markets, nobody can look at the trades and figure these strategies out. There is absolutely no risk, not even if you are implementing a perfect hedging strategy, through CFDs. Your open trades can be seen. But the criteria for choosing to place those trades at those particular times and prices are not known. And therefore no one can steal the idea.

Foreign Exchange Currency Calculator for Arbitrage Trading

Foreign Exchange Currency Calculator for Better Trading

Arbitrage opportunities appear every now and then. A foreign exchange currency calculator, and the correct data analysis can identify these hot opportunities.

Using a Foreign Exchange Currency Calculator Spreadsheet

A foreign exchange currency calculator spreadsheet is a handsome tool, which you as an arbitrage trader will have to devise and perfect. Arbitrage opportunities appear in the global forex converter mechanism. But they are short lived. They last for few minutes to several hours at most. Arbitrage opportunities are impossible to spot by visual observation of price on the forex charts. Arbitrage which offers the possibility for a profit, is always a brief opportunity. But it does exists. Whereas arbitrage for just breaking even on two opposite trades. So as to hedge total risk, is possible on a medium to long time frame. The arbitrage trader sets parameters for some specific formulas. And then checks the markets to see the value of these parameters. By checking these quickly on a spreadsheet, the trader can see if the arbitrage criteria are met or not. The most interesting concept is that of using arbitrage to hedge risk on Carry trades. So that almost all the risk of price movement is offset. But arbitrage in a very similar way can be used to hedge open losing trades through CFDs. And to finally recover much of the losses. Gold and AUDUSD are two such markets, where the risk of one, can be hedged through trading the other. There are specific concepts and formulas for measuring how thew two markets move. Then depending on what the open trade is doing (winning or losing), and what the main trend is. The trader can take appropriate action. In the case of losing on a trade in one market. An opposite trade on the other market (at the right size), can help limit lock open loss to a fixed amount. And possibly even recover much of the original loss. A foreign exchange currency calculator can figure things out in seconds. And give detailed guidance as to what the trader should do.

Making the Foreign Exchange Currency Calculator Spreadsheet

Making the actual foreign exchange currency calculator spreadsheet requires a lot of analytical skills. And also work on first ideas and formulas. This requires running past daily or hourly market data through the spreadsheet. And working with this data using hypothetical trades. The trader has to develop the parameters and set variables accordingly. So as to measure total risk at any one time. And then they will have to develop further ideas as to how to relate arbitrage strategies to directional forex signals. Because these directional trades provide the most profit in most cases. And even arbitrage traders implement these trades. They are just prepared to engage in hedging arbitrage for those trades, only if they become losers. Profiting from arbitrage directly, is possible too but the trader will miss to much if directional trades are ignored. As really risk-less arbitrage does exist, but the profit margins are usually too small. The biggest value of arbitrage is for hedged trading, and recovering losses. But one cannot go this far before fully understanding risk-less arbitrage theory.

Day Trading Forex Live during Active Market Hours

Day trading forex live during the best market hours results in better risk-reward exposure. Momentum traders use these active hours, so as to avoid false moves.

Day Trading Forex Live during Active Hours

Day trading forex live during the most active market hours is essential to momentum trading. Day traders expecting to ride 30, 50 or 100 pip moves cannot trade at any other time. Trading outside the active time zones results in too much poor judgment due to confusing price action. And it all has to do with trading volume. The average forex rate makes solid moves only during the active hours. Trading the forex market will still be a confusing and extremely difficult task at times. Even within the active trading time zone. Volatility however is clearer, there is momentum and follow-through in every move. So that even if the day traders gets the direction wrong. They can quickly hedge the losing trade with a another trade in the opposite direction, and twice the size. And they can get out at a break-even point, soon enough. Or even exit at a profit, through the hedging trade. Forex day traders use intraday pivot numbers, as defined by various trading theories. These numbers identify price reaction levels, risk levels and sideways trading range. On most days, these numbers are useful and make sense. Even the trading range numbers which define sideways market action are useful. Because the range defined is large, for example it can often be as much as 200 pips. And all the trader does is buying and selling at the levels defining this range. Profits can be seriously big on such days. Day trading forex live during active hours, and especially on news days, results in solid profitable trends.

Day Trading Forex Live Just before And during Active Hours

Day trading forex live just before and during the active trading time zone, is about divergences. If the market seems to trade higher or lower than yesterday’s range. Especially before active hours, where important economic news is to hit the market. Then market price will sweep through yesterday’s close, at least once. By knowing this, traders buy or sell pre-active session price swings accordingly. So if the market drops too much below, or rises too much above yesterday’s close, and news is expected. Then early during the active hours, and definitely before the exact release time, market price will cross through yesterday’s close, at least once. There’s no official daily closing price in the forex market, but the close as defined by daily charts whose time agrees with the active hours of the pair in question. Is in fact a high volume, valid closing price for trading this divergence strategy. In EURUSD for example, any charts provider based in Europe or USA, will have timing which matches the high volume closing daily price on this pair. But an Asian based chart provider may depict a different closing price, which is seen as closing price for Asian and Australian traders. But it is not defined as the close, for implementing the above strategy. The definition of the close has to do with the closing time of the active trading time zone. And active has to do with news and high trading volume. The strategy is perfectly implemented by pair-specific traders, through online CFD trading. The result is average profitability, but with well-below-average losses.

Trading live forex rates is quite interesting because it could potentially offer a more active trading experience, where one has to think and evaluate various parameters. And more activity helps keep the trader mentally active, as opposed to just having to execute a very disciplined, fixed task. Live forex rates create short lived opportunities in market, and trading has to be fast and accurate. But there’s room for doing something slightly different every day. This non-routine trading is interesting because it motivates the trader to evaluate and improve their methods. Thanks to leverage and the linearity of CFDs, traders can trade not just active trading hours, but also inactive trading hours. Flat market action is not really flat, as price still fluctuates several pips up and down. These few pips of market movement are enough to trade for a living. And yet these tiny movements are not even visible on the daily market charts! The whole task of trading as a scalper, in this fashion, is to avoid volatility and breakouts. This is why scalpers work during inactive trading hours. Currencies will always move by few pips, up and down, even when there is zero volatility. This is the less obvious way to trade, but it really works.

Best Trading Online Options Today’s Trader Has

Risk averse traders always put safety of funds before profits. Flexible strategies and hedging losing trades through CFDs are their best trading online options.

Some of the Best Trading Online Options

Some of the best trading online options for safety of funds, and avoidance of excessive risk include several methods. The risk averse trader has many options to trade the financial markets, and risk can never be reduced below a minimum amount, unless risk-less arbitrage is used. But risk-less arbitrage comes with a lot of work, and limited profit potential, maybe as little as 3%. Traders interested in day trading forex strategies are often put off by the risk involved, and the confusion which dominates the markets. A foreign exchange currency rate can move in so confusing ways, that no rigorously defined strategy can ever deal with it profitably. Tight stop loss orders get triggered in no time. Resistance and support levels make no sense. And too many opportunities are missed at night, just because the strategy in question doesn’t allow holding trades overnight. Many popular trading strategies fail to even show a small profit, through days and days of trading. This is because these strategies are crude and primitive, so much so that it stands to reason that the people who devised these strategies probably never used them themselves. The best trading online options a trader has, are the ones offering greater flexibility and breaking some of the rules of day trading. First of all, the trader needs to know when a losing trade will remain a losing trade, and when it will turn around. Knowing how to do this and this alone, is priceless in day trading. Because temporary losers can be hedged through CFDs and lock the open loss. This can go on for hours or even days. And if the trader knows what they are doing, it will save them a fortune in unnecessary losses. Stops can be used at the same time, and these can be very large stops. These are the best option a trader has for establishing great flexibility.

Trading Online Options for Commodity Traders

Commodity traders face the same problems as currency traders. Except on the longer term trends, where commodities can be easier to figure out than currencies are. Commodity traders’ best options are to focus their primary analysis on the quarterly time frame, and to also use large stop loss orders. They can increase flexibility further by invoking dynamic and scalable hedging. Scalable hedging is whole science all by itself, and definitely worth investigating. This means using the original commodity market of interest, trading in the desired direction (according to the quarterly trend). And then trading small counter moves in the commodity. And hedging losing trades of both directions when necessary. The only variables that need controlling on the part of the trader are trade size and trade duration. Such hedging can be implemented through many, not just the best forex trading platform, as long as the key commodities of interest are offered. Most forex platforms do offer crude oil and precious metals. Moreover, hedging itself can be extended through the related, correlated commodity currencies. As these currencies may be out of phase relative to the leading commodities. Thereby enhancing the power of hedging. Since the well planned profitable trade of correct duration and size, can exceed the cost of the corresponding hedging trade, and vice versa. So the reality is, that classic trading strategies are crude and primitive and will never really work. Most have been invented by people who didn’t know what they were doing at all. And who failed to explore all the trading online options. In the real world, rigorously defined strategies simply don’t work. And the more well defined a strategy is, the more it fails to connect to the volatility of the market. Always remember that currency commodities provide great, smooth leading signals. Which the currencies themselves cannot provide due to having greater volatility.

Another Day Trading Forex System

Introduction to Day Trading Forex System

Price retracement is a concept which works because market price tends to move randomly between key pivotal levels. This constitutes a day trading forex system.

How this Day Trading Forex System Works

This day trading forex system works because market participants never fully agree on direction. And the market in question tends to reverse at these pivotal points. These points are price levels defined by LSS numbers, yesterday’s close and open gaps. Many currency pairs tend to leave open gaps throughout the daily session, especially during the active trading hours. These gaps are later filled, either on the very next day, or days later. A more frequent occurrence is the testing of LSS pivots. Entire forex strategies are based on LSS theory, using both the daily and weekly pivots. The day trader uses LSS pivots much the same way, except that they take into account other factors, specific to that day. News release times identify the exact time when volatility will rise dramatically. Day traders place their trades before and after these news release times. The ones before are counter-trend trades. Whereas the ones after the news release times are in either direction. They simply watch those pivots and expect the market to at least pause moving for a while. Whether it will reverse or break through these pivots depends on the day’s market strength. The LSS based day trading forex system is safer than other systems. Because most other indicators used by traders, are highly inaccurate. Indicators such as oscillators and even chart patterns suffer from poor timing. Other traders use candlestick patterns and high-low point analysis. Candlestick patterns are okay, though one cannot rely on them exclusively, for day trading. Even candlestick patterns are ambiguous, and create confusion. As one zooms in and out on the charts, one candlestick pattern appears as another.

A Better Day Trading Forex System

An even better day trading forex system is one based on all these pivot numbers, as well as the overall daily trend. Learning how to trade forex through these methods, avoids many losing days. Days where the market will simply move with huge momentum, and will reach the most distant LSS pivot. Day traders watching the daily trend know that this is bound to happen on some days. And therefore handle their open losing day trades accordingly. An open losing trade against the daily trend has to be closed, whereas an open losing trade in the same direction as the daily trend, can be left open. Online CFD trading makes it possible to implement this strategy, at low cost, and at below average risk. By allowing you to get the best price possible at those LSS pivot levels. Unlike spot market forex traders who tend to suffer from lack of liquidity, which results in requotes and slippage. Above all, traders need to treat each trading day uniquely, and to expect history not to exactly repeat itself, because it never does. With some research around these LSS pivot numbers one can have a road map during the active trading hours, which many other day traders are oblivious to.

A good day trading forex system is one that offers trading through preparation, by looking at the day’s expected trading range and pivotal levels. Moreover, the daily chart and even the weekly chart are both relevant to day trading. Not all day traders agree on this. But it is proven that one day or another, the intraday support or resistance will be something to do with the daily or weekly chart. After all, the market is made of all kinds of participants, having different objectives and time frames. But they all trade and can make new trades during active hours. Multiple time frame analysis only needs to be done once a week, and it will be relevant for the entire trading week, It’s not something that traders have to do every day. So it is wise to pay attention to the daily and weekly charts. A day trading forex system should look more into the big picture, and less on what happened yesterday. Yesterday’s data may be somewhat relevant, but the new day will certainly make something new happen, which will defy yesterday’s expectations. Various classic day trading methods are flawed or outright wrong, especially those defining support and resistance. It’s better to stick to humble LSS pivot analysis for the day, and handle market momentum accordingly.