Forex Investment and Currency Trading

USD began this week on the back foot relinquishing most of Friday’s gains in a move that coincided with a bounce in gold and oil prices. Gold edged up 1% off the lows overnight, pushing back up to around USD800/ozt, while crude oil was also better bid, rallying up to around USD115/bl following an article [...]

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Rollovers
A rollover is the process whereby the settlement of an open trade is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
In the spot FOREX market, trades must be settled within two business days. For example, if a trader sells a certain [...]

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Using triangular arbitrage strategies on the FOREX market has one very salient advantage: predetermined profits can be realized if the trades execute smoothly. Unfortunately, die disadvantages of this strategy are numerous:

Higher transactions costs. The trader must pay the bid/ask spreads on three separate trades.
Higher margin requirements. Roughly three times the margin is necessary to execute [...]

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