Fixed currency market prices
|Does a Fixed currency market or market in related Financial instruments apply to a price Fix, prices Fixed to pips and points or are both factored into the equation.
For 28 currency pairs based on this arcane topic stressed called interest rates then the total market pips available to trade on any given trade day totals 3274 pips. This assumes prices trade to its full potential of pips.
The average price traded for all 28 currency pairs is 116 pips and a Median of 112. Prices can only drift from 116 pips by 36 pips and a range from 80 pips to 153 pips. The boundaries of prices are also Fixed.
If currency prices for all 28 currency pairs trade 1/2 the range which is fairly normal for today's currency market then 1637 pips trade or 1/2 from 3274. if 1/4 of all currency prices trade then 409 pips trade.
The average price move for all 28 currency pairs based on 1637 pips is 58 pips, a median of 56 pips and a drift of 18 pips. The price range then trades from 40 pips to 76 pips or 1/2 the range from 153 and 80.
The new 2016 interest rate change slashed the total market pips by 30% to employ EUR/USD as the example. This means total pips from 3274 was once 4256 pips and 2128 pips from 1637. Exact pips slashed from 2128 to 1637 equates to 491 pips and 982 pips from 4256 to 3274 for all 28 currency pairs.
The addition of 30% to prices is called volatility as prices ranged far and wide on any given trade day.
Subtract 4 current outlier currency pairs as wide rangers as follows: GBP/NZD, EUR/NZD, GBP/AUD and GBP/CAD then total pips traded for the full ranges goes from 3274 to 2550. An average of 106 pips, a median of 103 and a range from 78 to 134 pips and a drop from 80 and 153 ranges by 19 and 2 pips.
if 1/2 the range trades as 40 to 76 pips then total ranges ftom 78 and 134 factors to a drop of 38 and 58 pips.
The Statistics formulas used by central banks for day trades hasn't changed and remains exact pre 2016 and today based on the new interest rate changes. What changed was the scale as boundaries were shortened, available pips to trade decreased and length of time to trade targets increased.
Not exact but my assessment to trade time increased by 3 hours from previous 1 1/2 and 1 1/2 to include previous 6:00 am and 8:30 am. EST. Trade time today is 7 1/2 hours. Then day trades are over and done.
To lacerate 30% to all currency prices to decreased ranges and available pips to trade then means all market prices were cut as the currency price is the leader, dictator and forecast to all market prices to include stock indices and commodities.
And this explicitly defines the day trade.
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