If the price of the underlying increases and is above the put's strike price at maturity, the option expires worthless and the trader loses the premium but still has the benefit of the increased underlying price. On the other hand, if the underlying price decreases, the trader’s portfolio position loses value, but this loss is largely covered by the gain from the put option position. Hence, the position can effectively be thought of as an insurance strategy.
Interest Rate Risk: The moment that a country’s interest rate rises, the currency will strengthen. The boost in strength can be attributed to an influx of investments in that country’s assets since with a stronger currency, higher returns can be more likely. But if the interest rate falls, the currency will weaken, which may result to more investors withdrawing their investments.
Rosenberg, then an analyst at Merrill Lynch, wrote one of the definitive works on forex trading. It was first published in 1995, and ever since, analysts and traders have turned to his concise, intuitive, and brainy text. It combines the macroeconomics of foreign exchange and international monetary dynamics with fundamental and technical analysis. Rosenberg's ability to delineate clear connections between disparate financial and economic factors continues to make Currency Forecasting a go-to guide for currency traders.
Gold = 1899.95 Copper = 2.89 Silver = 23.00 Platinum = 955.35 US Coffee C = 102.85 Brent Oil = 42.26 Crude Oil = 39.60 US Cotton #2 = 62.58 Natural Gas = 1.71 US Wheat = 488.75 US Corn = 344.50 Heating Oil = 1.22 AUD/USD = 0.0000 EUR/GBP = 0.0000 EUR/JPY = 0.00 EUR/USD = 0.0000 GBP/USD = 0.0000 NZD/USD = 0.0000 USD/CAD = 0.0000 USD/CHF = 0.0000 USD/JPY = 0.00 DAX = 12838.06 AEX = 563.95 S&P 500 = 3223.38 FTSE 100 = 6215.65 CAC 40 = 6029.55 IBEX 35 = 9661.80 FTSE MIB = 19715.00 Nikkei 225 = 22300.00
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market, and the futures market. Forex trading in the spot market has always been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading and numerous forex brokers, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.