Carry Trade
Central Banks and the Paper Gold Market
With gold seen once more as a strategic asset, central bank buying has been steadily on the rise. One obvious reason is to diversify foreign exchange reserves away from US dollars.
Simple Forward Collar Strategy
The forward collar is a trade-off strategy where you give up some gains to limit losses. It's useful if you expect an asset to stay range bound.
What are the Alternatives to the Yen Carry Trade?
The carry trade has a simple aim: Borrow low and lend high. Japanese yen is often the borrowed currency in carry trades. This is because it’s cheap.
3 Yen Trades that Make Money
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.
AUD at Multiyear Lows following Growth Figures
The Australian dollar suffered a further blow today after the government’s official figures showed that GDP was much weaker in the second quarter than expected. GDP rose by 2% on the quarter a year earlier.
The Reverse Carry Trade
The reverse carry trade is what’s called an event driven strategy. It’s not a trading system you can use every day – yet at the right time it can generate enormous profits very quickly, and is therefore one you should keep up your sleeve ready to use.
Using Yield Curves to Forecast Exchange Rates
Yield curves for a currency pair can reveal a wealth of valuable information. They tell you the expectations for the economies and the interest cycle.
VIX Approaching Multi-Year Low on Strong Stocks
The DOW and S&P500 have been hitting all time highs this month. This has come on the back of a strong earning seasons and...
How Interest Rates Influence the FX Markets
Because interest rates and the debt markets have such a significant effect in forex, it pays to keep a close eye on them. It isn’t enough just to wait for the announcements and guidance from central banks.
Tactical Carry Trading: A Short Duration Strategy
In tactical carry trading, short-term "technical" trades are entered in the direction of carry interest. This allows interest income to be accrued.
