Trading foreign exchange markets can often feel like picking a winner at the Masters: you try to execute on a general opinion only to be met with a whole mess of choices.
So, what do you do in an asset class that seems straightforward yet is divided among too many options? You start basketing. Looking at driving distance? Choosing DeChambeau AND Cameron Champ could yield a higher probability of success. Putting accuracy interest you more? Picking the top two putters (Webb Simpson and Patrick Reed) might reduce your chances of picking the right category but wrong golfer.*
Choosing the Right Currency Cross
Traders can translate this strategy to the vast, intimidating world of currency crosses! For example, if you think Asian currencies will appreciate against the US dollar, then you could try buying Japanese yen AND Chinese renminbi against USD. This one degree of simplification already works to increase probabilities and reduce your fear of missing out.
Picking Direction in a Diversified US Dollar
Taking your ideas to execution using a product that offers diversified, basketed exposure similar to an equity index might be a more efficient alternative. Small US Dollar futures spread USD exposure across euro, yen, renminbi, and more, so you don’t have to stress out about picking to correct cross.
Small US Dollar \ SFX
As foreign exchange markets and golf tournaments heat up for the first time all year, you probably don’t want to research every player just to join in on the fun. Start with a simpler route to this opportunity unlike any other.
*All stats from https://scores.nbcsports.com/golf on 4/8/21
To learn more about how the Small Exchange is merging the efficiency of futures with the clarity of stocks, make sure to subscribe to their YouTube channel and follow them on Twitter so you never miss an update.
© 2021 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading futures involves the risk of loss, including the possibility of loss greater than your initial investment.