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For a trade with a time to expiry of v days, the expiry date is the day v days ahead of the horizon date (unless it is a weekend or 1 January, in which case the date is rolled forward to a weekday) and for a trade with time to expiry of x weeks, the expiry date is the day 7x days ahead of the horizon date (with the same conditions as above).
An economic calendar not only lists daily events, but the volatility levels attached to them. A volatility level refers to the likelihood that a specific event will impact the markets. Economic calendars usually have a three-scale volatility gauge. If an event has a level one volatility, it is not expected to significantly affect the markets.
As of 2010, the average daily turnover of global FX spot transactions reached nearly US$1.5 trillion, counting 37.4% of all foreign exchange transactions. [1] FX spot transactions increased by 38% to US$2.0 trillion from April 2010 to April 2013.
The foreign exchange supply and demand has caused the exchange rate to change. Economic strength of a country: In general, high economic growth rates are not conducive to the local currency's performance in the foreign exchange market in the short term, but in the long run, they strongly support the strong momentum of the local currency.
Dating back to 1945, September has historically been the year's worst month for the S&P 500 with the index falling, on average, 0.7% during September and logging gains less than half the time.
If these two returns weren't equalized by the use of a forward contract, there would be a potential arbitrage opportunity in which, for example, an investor could borrow currency in the country with the lower interest rate, convert to the foreign currency at today's spot exchange rate, and invest in the foreign country with the higher interest ...
The calendar includes economic releases that determine the strengths and weaknesses of the economy. Thus, if a trader only knows that the GDP growth of the country whose currency he trades declined compared with the forecast, he can expect the fall of the domestic currency.
A currency future, also known as an FX future or a foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date; see Foreign exchange derivative. [1] [2] Typically, one of the currencies is the US dollar.