Why trade forex
Course overview
Description
Many forex traders use a host of resources to inform and guide their trading decisions. Participating in the markets requires more than just opening and closing trades on a whim. A lot of research and practice are required to improve your approach as the market is everchanging and evolving.
If you’ve completed all our introductory courses on trading forex markets, this course aims to introduce you to more advanced concepts. You’ll discover how to trade around different forex market trading times, how to use breakout and range trading strategies and more.
Time
Level
Benefits
Lessons
-
1
Understanding forex rollover
15 min -
2
Using the currency carry trade strategies
10 min -
3
Types of forex analysis
10 min -
4
Trading the 24-hour forex market
7 min -
5
Trading the London session
6 min -
6
Trading the New York session
6 min -
7
Trading the Tokyo session
5 min -
8
Navigating closed markets on weekends
5 min
Example lesson: Using the currency carry trade
We’ve already explored the idea of carry trades in the previous lesson. The concept is simple enough: traders use this technique in an attempt to profit from the interest rate differential – which you may now know is called ‘rollover.’
This lesson will explain FX carry trades further through examples. We’ll also explore popular carry trade strategies and how you can try to incorporate them into your trading plan.
What’s a currency carry trade and how does it work?
A carry trade involves borrowing a currency in a country that has a low interest rate (low yield) to fund the purchase of a currency in a country that has a high interest rate (high yield).
The idea behind it is to hold such positions overnight in the hope that an interest payment will be made to you based on the ’positive carry’ of the trade.
The lower yielding currency is referred to as the ’funding currency’ while the currency with the higher yield is referred to as the ’target currency.’
@2003 - 2023