it can smash through financial markets, trade, and even debt costs. The DXY Index (US Dollar Index) helps traders and investors track these movements – showing how the dollar stacks up against six major currencies. In this guide, you’ll learn what the DXY is, and why it matters for yo...
your trade is in-the-money when market prices havefallen belowyour strike price. When buying a call option, your trade is out-of-the-money when market prices havefallen belowyour strike price. When buying a put option, your
The Directional Movement Index (DMI) helps in assessing the trend direction and providing trade signals. If +DI line is higher up than -DI line, the market is believed to be trending upwards, and a long trade can be taken. Similarly, if -DI line is higher up than +DI line, a short...
Hedge fundsoffer portfolio diversification similar to mutual funds. However, hedge funds have more flexibility with the investment vehicles they can use. For instance, hedge funds can short equities, accumulate commodities and trade derivatives. Mutual funds do not have this flexibility. ...
Ultimately, the goal as an investor is to buy shares of stock, then sell them later for a profit as the value of the company (stock price) appreciates (goes up). What is the S&P 500? The S&P 500 is the most widely followed index in the world. If you want to invest in the United...
Investors can also trade crypto and capitalize on price fluctuations. Some traders monitor price fluctuations throughout the day, while others set "good 'til canceled" orders to have trades executed once crypto reaches the set limit price. These types of orders minimize the amount of time ...
The Commodity Select Index (CSI) was intended by Welles Wilder to be used to select the best commodity to trade byweighing the volatility and trending characteristics of each futures market. What Does the CSI Look Like? The chart below of the 100 oz. Gold Futures contract illustrates the Comm...
how much volatility investors expect to see in the S&P 500®Index over the next 30 days, based on prices of S&P 500 Index options. When options traders think the stock market is likely to be calm, the VIX is low; when they expect big swings in the market, the VIX tends to go up...
Traders use the U.S. dollar index to track the value of the USD against a basket of select currencies in a single transaction. They can also protect against currency risks using tradablederivativesof the index, such as USDX futures and options. These financial products currently trade on theIC...
The Dow Jones is the stock market index; the Dow Jones Industrial Average (DJIA), which tracks 30 of the most prominent companies that trade on U.S. stock exchanges. Dow Jones futures are simply futures contracts that can be purchased to hedge or speculate against components in the DJIA. T...