Dollar Index Spot Trading Positions
The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies.
These currencies are the Euro (constituting 57.6% of the weighting), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%).
Important assets for Dollar Index
- Currencies: USD, EUR, JPY and CNY.
- Commodities: Oil, Gold and Natural Gas.
- Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).
- Indices: S&P500 (American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ) and DOW (or DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).
Related Trading Position Post
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Many traders are attracted to the FX market due to the wide availability of leverage: the ability to control a trading position larger than your available capital. And arguably for good reason; leverage can be an effective tool in allowing an investor to achieve desired returns on trading capital. Yet leverage magnifies losses and represents a key risk, and indeed our data and experience shows that it is often misused and leads to very large losses.
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