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U.S. Dollar Index Futures

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DX1! trade ideas

Bites Of Trading Knowledge For New TOP Traders #6 (short read)Bites Of Trading Knowledge For New TOP Traders #6 --------------------------------------------------------------- What is Hedging? – Hedging is the action taken through the use of a financial instrument to minimize the loss or risk of the loss of value of an asset due to adverse asset price movements. Who are Hedgers? – Hedgers are market participants such as commodity producers who want to lock in selling prices of commodities they produce, or food manufacturers who want to lock in buying prices of raw materials purchased. Market participants also include financial institutions handling financial assets and use derivative products such as futures to manage the risk of a portfolio of financial assets. What is the difference between Physically Delivered vs Cash Settled Futures Contracts? – Physical delivery is a term in a futures contract which requires the actual underlying asset to be “physically delivered” upon the specified delivery date, rather than being traded out with an offsetting contract. Cash settled futures on the other hand allows for the net cash amount to be paid or received on the settlement date of the futures contract. Futures exchanges may offer both types of contracts to market participants who have different purposes for trading futures contracts. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Diversification: Correlation in Futures – Investors could allocate a portion of their portfolio to establish a managed futures position to deliver non-correlated results under most market conditions, which may serve as a risk mediator within an overall portfolio. This may deliver lower relative returns during periods of price stability. However, during periods of market stress, managed futures could outperform the broad market. For example, the Asia Tech 30 index which has no Thai companies as a component stock would not be expected to have any Thai Baht (USDTHB) currency exposure and which could be included in a managed futures portfolio at times where there is no or low correlation between the two markets and could be used as a hedge during times of negative correlation. Source: ICE Connect Diversification: Portfolio Focused on Asset Returns – Individual investors who have a portfolio of foreign stocks will have a return that is composed of the return of the foreign currency-denominated stock plus the change in currency exchange rates. Therefore, investing abroad means having exposure to two different sources of risk and return made up of the underlying asset and the exchange rate. For a long-term investor, the focus on return-generating assets may be the priority rather than returns from currency exchange rates. This could imply removing currency risk through a clearly defined hedging strategy process initially, and then adding back currency exposure at a later stage if it is determined that currency exposures could improve a portfolio’s return. Investors would need to analyze their expected returns with and without currency exposures and determine their net currency exposure to be removed. U.S. Dollar based portfolios could use futures contracts such as the Mini US Dollar Index ® Futures to hedge a basket of foreign stocks denominated in their respective domestic currencies. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
Elliott Wave View: Dollar Index (DXY) Could Extend the Rally HigShort-term Elliott wave view in Dollar Index suggests cycle from October 28 low is in progress as a 5 waves impulse Elliott Wave structure. Up from October 28 low, wave 1 ended at 94.3 and pullback in wave 2 ended at 93.82. Wave 3 is currently in progress with subdivision as another impulse in lesser degree. Up from wave 2, wave ((i)) ended at 94.62 and pullback in wave ((ii)) ended at 93.87. Index then resumes higher in wave ((iii)) to 96.24, and dips in wave ((iv)) ended at 95.5. Expect the Index to extend higher 1 more leg before ending wave ((v)). This should complete wave 3 in higher degree. Afterwards, it should correct cycle from November 4 low in wave 4 in larger degree before the rally resumes. Near term, as far as pivot at 95.5 low stays intact, expect the Index to continue to see further upside to end wave 3. Later, expect larger degree wave 4 pullback to also find support in 3, 7, or 11 swing for further upside. Potential support area for wave 4 can be measured later once wave 3 completes at 23.6 – 38.2 Fibonacci retracement of wave 3.
ICEUS:DX1!
by Elliottwave-Forecast
Dark Days For the Dollar Haters???I find it difficult to see the world "excuse me" Duh Metaworld any different than times of passed. True things have been fun but I doubt that our fun is now coming to a conclusion. It's been really encouraging to get stock tips and the next best crypto buys from friends and family. All in all I still feel good about the dollar and the even greater opportunities that will be seen as the cloud of FOMO finally dissipates. (This includes the down with dollar crowd) No Advice to give just thoughts that I can't shake after the last 6 years in the world of CRYPTO Making Dollar Coin 🤷‍♂️ #Fixed IDK Protect Your Neck! 🙏 FOR JUST A HEALTHLY PULLBACK! ""KEEP CALM AND MANAGE THY RISK!"" I am The CoinSLayer 👨‍💻😈
ICEUS:DX1!Short
by BradySWilliams
4
The Dollar VacuumI am long USD or short CAD whatever way you want to look at it. Have been since 1.22 USDCAD. That dollar index has recently crossed above the 200 weekly SMA. Though short-term RSI might cool off a bit with a pullback to 200 weekly SMA. My previous mention of Double bottom on the USDCAD chart still seems good. The real catalyst for the dollar index seems to be the everything bubble narrative. I currently hear that narrative less than the always-up inflation story. The everything bubble would be a huge deflationary move. Think everything goes on sale who wants cash for that? "Cash is trash" and most people have lots of debt. So assets go down debt stays the same or interest goes up. Where does the cash come from? People buying other people's discounted everything. Also, USD deflation is inflation on other nations currency likely hyperinflation of many. This is my theory and in no way financial advice.
ICEUS:DX1!Long
by JamesRennie
Watch the $DXY for $CL_F #Oil The recent move in the dollar has put a lot of pressure on oil recently...as it has been skidding around $80 the past few days. Yesterday's API report showed a small increase in oil inventories and the market is waiting for confirmation from EIA later today. It looks as though a confirmation has already been priced in and only an unexpected increase well above +600k barrels would shock the market to further downside in the short term. The structural market to watch is the dollar which has seen a 200 basis point move in a very short time frame. The DXY looks quite a bit extended. If we get a reversion to the mean in the dollar...oil should explode higher. Today we have quite a few Fed speakers and a 20 year bond auction which could move the dollar. So today may be a make or break day for oil.
ICEUS:DX1!
by cwmetz
Bites Of Trading Knowledge For New TOP Traders #5 (short read)Bites Of Trading Knowledge For New TOP Traders #5 --------------------------------------------------------------- What is the bid-ask spread? – Bid-ask spread is the amount by which the ask price exceeds the bid price for a market. The bid-ask spread is the difference between the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. An individual looking to sell will receive the bid price while the one looking to buy will pay the ask price. A wide spread may indicate low supply or demand for a market at that point of time during the trading period, while a narrow spread would indicate sufficient supply and demand for a market meaning strong buying and selling competition is at play. What is the role of a market maker in the financial markets? – Market makers are market participants who ensure there is enough liquidity and volume of trading in the markets and offer to sell a market at the ask price and will also bid to purchase a market at the bid price to traders and investors. How does the bid-ask spread relate to liquidity of a market? – The size of the bid-ask spread from one market to another differs mainly because of the difference in liquidity of each market. Certain markets are more liquid than others and that commonly is reflected in their lower spreads. Price takers demand liquidity while market makers supply liquidity. For example, foreign currency futures would have very low spreads during the trading day given the use of currencies as a medium of exchange to do business globally compared to live cattle futures, which relates more to businesses in the United States domestic market. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Diversification: Futures Spreads with Currency Futures – A futures spread is usually created when one futures contract is sold simultaneously to the buying of a second related futures contract in order to capitalize on a discrepancy in price. Currency futures spreads combine the use of different currencies usually paired to the U.S. Dollar with the same contract month to express a relationship between the two currencies usually taking into account their strength or weakness relative to each other. For example, the Singapore Dollar (USDSGD) may be seen to be strengthening (price movement is downward) while the South Korean Won (USDKRW) may be seen as being very weak (price movement is upward). To take advantage of this observation, we would want to buy Singapore Dollar (sell the USDSGD future) and sell the South Korean Won (buy the USDKRW future) and as a result eliminate the U.S. Dollar. However, it must be noted that not all currencies are quoted in the same way like the Australian Dollar futures is quoted “AUDUSD”. It means then that to take advantage of a strong Australian Dollar and a weak South Korean Won quoted as “USDKRW”, an investor would need to buy both the AUDUSD future and the USDKRW future. Diversification: Portfolio Risk Using FX Futures – Individual investors taking a portfolio approach with managed futures and spot foreign exchange could be entering into emerging market currency positions including for example Hong Kong Dollar, Singapore Dollar or South Korean Won. Depending on the view of each of the currencies in the portfolio, it could be constructed to eliminate exposure to the U.S. Dollar. However, there may be a time during which investors would like to introduce U.S. Dollar exposure and they could do so by using Mini U.S. Dollar Index ® Futures with a contract value of $10,000. For example, the U.S. Dollar Index ® may be observed to be in a medium term uptrend and an investor may want to consider entering into a long position in the Mini U.S. Dollar Index ® Futures based on their strategy of choice and exit the position when either their profit target is achieved or their loss limits are triggered. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
DX / DX1 - Friday's Dollar "Less Transitory"The Taper of Bond Purchases begins @ $15 Billion, it will be the shortest "Taper" in History. Over and done before the announced Timeline of 7/8 Months. They'll either slow it dramatically or reverse course Mid-Point due to - you guessed it... "Policy Error" Not that it amounts to a drop in the Bucket given O/N Repos are approaching $2 Trillion, recently cresting $1.8 Trillion with no signs of abatement. Secretary of the Treasury, Janet Yellen announced Friday - "Inflation will be with us throughout 2022." ____________________ The Global Supply Chain "Crisis" - yes it is now a "Crisis" continues to create issues for People around the Globe. Rolling downhill, the wreckage is Far and Wide. Elevated Inflation Data sent the Dollar in a rather large vertical - +0.8475% - a shove higher, on a Friday no less. The 10Year Note Futures (ZN) are performing the squatty potty routine, attempting to hold on to 130. A feat that has been ongoing for weeks on end. To some, this is "Bullish." Dunno seems to be Selling it has worked here from the 134s, some Traders appear to enjoy arguing with success. Personal Income declined 1% M/M - Spending increased 0.6% - PCE Core @ 30 Year Highs ____________________ The Dollar came off the 50SMA @ the Lower Trend Line of the rising Channel. Backtesting the Breakout... expected. Volatility next week is going to be "Frustrating" as Jerome would echo and has. Pesky Inflation, from the Pests @ the Federal Reserve. The DX is gaining strength and momentum... oops. It was all but ignored Friday. ____________________ The 007s are back, true to form, it's to the Moon again. Insistent to lose their Capital to the scrouges of Inflation. Have it again Baggies, we'll take your Capital and thank you again. Our scorecard, there on the back nine... 8 under Par while the 007s gorged on Hot Dogs off the 10th Tee. Eventually, too many Manhattans & Dogs had the careening into the Pond on Hole 12. At 18, they were 22 over, but insisted the bet was 36 Holes... it wasn't - revisionism is the new truth. Keys were handed over to the pride of Aston Martin's... with all of "M's" goodies in tow. One drunken Bondie needed a ride to his Estate, didn't feel a thing when ejecting his seat in the parking lot, prey/predator/splat. BONDs will PRICE INFLATION again. It is dead ahead, TLT Filled its Gaps as we indicated on the FR of 139, time to begin hunting the 139s to 134s. ____________________ We see the DX Price Objective just shy of 98. Oh my... that is up there... what, pray tell would become of Yields? Higher, Higher, Higher with INTENSIFYING VOLATILITY. This is not an environment the Equity COmplex will escape unharmed. We suspect the actual harm will be greater than before. The Dollar has been monkeyed with for several weeks, FX - JPY / 6e, the uptrend for Uncle Buck appears ready to surge. Indicators for FX, Equity Market Volatility Event - Equities will be smoked again, and WHY the RUSH to A higher Fill. The Silly Phase is well underway. Retail Bulls remain in the UTL Camp, a bonfire of the Vanities. ____________________ We are patiently waiting, sticks are being stripped of bark, Marshmallows being plated, nearing time to begin the Roast.
ICEUS:DX1!
by HK_L61
4