How to trade single currencies?

Discussion in 'Trading' started by farmerjohn1324, Feb 7, 2020.

  1. We all know that currencies trade in pairs. But what if I had a guess about just one? I didn't want the 2nd of the pair to distort my results.

    Are there futures contracts for this? I asked this as part of another post, but I thought it deserved it's own thread.
     
  2. Yes there are currency futures contracts. And options on those contracts.
     
    Nobert and remogul92 like this.
  3. MrMuppet

    MrMuppet

    dude...how would that work? Every single asset on this planet is tied to another one.
    Stocks trade in dollars, oil trades in Euros, you can trade soybeans against gold.

    I asume you are from the US. And you wanna bet on the Dollar cause Trump. trump is good for the Dollar, Dollar very stronk...but against what??? What is weak compared to the Dollar?.

    It's called trade, because you give one thing and receive the other
     
  4. MichalTr

    MichalTr

    No, futures contracts are also spreads. It's trading agains US Dollar.
     
  5. trdes

    trdes

    why does everyone want to try and re invent the wheel
     
  6. These futures contracts track a currency against a basket of other currencies. Rather than just 1.

    So on this jobs report, I wouldn't have lost due to the JPY doing well. I would not be forced to put so much weight against one other currency.

    (Although I guarantee JPY is part of that basket)
     
  7. Trading data releases is reinventing the wheel?
     
  8. trdes

    trdes

    I don't have the luxury of thinking that small yet. Just meaning I trade to make money. I assume you're trading or want to potentially trade to make money too.
     
  9. MrMuppet

    MrMuppet

    err...trade the US dollar index futures maybe? I don't know how it solves your issue, because instead of one asset you will have multiple currencies influencing your dollar trade....but I mean...If you just throw something at the wall and hope that it sticks you might just do it with something you perceive as simple.
     
  10. Of course. And at this point, trading around something fundamental like a data release makes most sense to me.

    Whether or not TA can work under certain circumstances, it still seems very arbitrary to me.
     
    #10     Feb 7, 2020