In the early 1980’s an experiment took place to find out if it is possible or not to take a bunch of ordinary people off the street and turn them into trading moguls.
We all have to deal with losing trades at some point or other. But the question of what to do when this situation arises can pose several challenges. When confronting a losing trade we face three possible choices.
With covered interest arbitrage, a trader is looking to exploit discrepancies between the spot rate and the futures or forwards rate of two currencies. This allows the trader to borrow or lend at below market or above market rates respectively.
One of the ways to succeed in trading is to predict the market by thinking “ahead of the crowd”. When doing this an uptrend can mean a selling opportunity. A downtrend can mean a buying opportunity.
This post looks at three alternative strategies that you can use to trade Japanese yen. Yen has some unique attributes that set it apart from other currencies. It is the third most traded currency after the US dollar and the euro.