How can I trade longer-term instruments in foreign currency?
I am a newbie to foreign exchange investing. I am not a very good day trader. Are there tradeable instruments to take a longer-term positions (i.e., # of months) on the movement of currencies? Is so, what are they?
Public Comments
- There are. If you are bullish on the US Dollar, then you open a long position on, say, EURUSD. You then hold that long position until you think the trend is starting to change. It does not matter how many weeks, months or years you are long on that currency pair as you are on the right side of the trend. If the market tells you that your analysis was wrong, then you either close that position with a loss, or keep adding funds to your account so that you do not get a margin call. What I like about currency trading is that, if you are on the right side of the trade, your position earns interest, over and above the capital gain. On a per trade basis, the interest earned doesn't look much, but they all add up at the end of the year. Consult with your broker if they offer this feature to their traders. If not, open a trading account with oanda.com Hope this helps. Jim http://jsforex.blogspot.com
- http://www.OptionsXpress.com Forward futures contracts on currencies are available, both puts and calls.
