June 18, 2010

Dollar Index Futures Correlation & Minimum Trading Capital

Did you know the Dollar Index is one of the most illiquid markets that

EVERYONE should be watching?

So why can such a low-volume market control other markets 100-times its size?

Dollar Index Futures Correlation:

– World’s reserve currency

– Everything is settled in dollars

– Buy Crude Oil, sell it for a profit…..profit in USD

– Expiration on Euro….settled in DOLLARS

– What is the Gold denominated in? Dollar

– Very low volume market, so we don’t trade the DX

– We use the dollar for its simple negative correlation

– Crude Rising…dollar falls.

– FDAX falling….dollar rises

– Dollar is flat….everything is flat

– Dollar @ its open….everything else at their opens

– Dollar is trending….everything else trends…opposite way.

    schooloftrade

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