A bear market is when a market or even individual securities experiences extended price declines. The condition observed in the equity markets is where securities prices fall 20% or more from recent highs triggered by negative investor sentiment and/or overall pessimism in the markets.
What defines a Bull Market? -
A bull market is the condition seen in a financial market or individual security in which prices are rising and/or are expected to rise. Commonly the rise in price is observed over an extended period of time and can last months or years.
What is Inflation? -
Inflation is a rise in prices and is often expressed as a percentage change over a period of time. Inflation could also be interpreted as a decline of purchasing power over time, meaning that a unit of currency buys less than it did in prior periods.
RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS - Common application of financial market instruments for managing risk and opportunities.
Diversification: Portfolio Risk Using FX Futures
Individual investors taking a portfolio approach with managed futures and spot foreign exchange could be entering into emerging market currency positions including for example Hong Kong Dollar, Singapore Dollar or South Korean Won.
Depending on the view of each of the currencies in the portfolio, it could be constructed to eliminate exposure to the U.S. Dollar. However, there may be a time during which investors would like to introduce U.S. Dollar exposure and they could do so by using Mini US Dollar Index ® Futures with a contract value of $10,000. For example, the U.S. Dollar Index ® may be observed to be in a medium term uptrend and an investor may want to consider entering into a long position in the Mini US Dollar Index ® Futures based on their strategy of choice and exit the position when either their profit target is achieved or their loss limits are triggered.
Please feel free to join our ˲tradewithufos community, we provide comprehensive trading courses and trading apps. Complete course offerings: www.tradewithufos.com/courses
Disclaimer: All Content contained on the Platforms are provided for informational purposes only. You further acknowledge that nothing contained on the Platforms or made available through the Platforms constitutes investment, legal, tax or other advice, nor is it to be relied upon in making any investment or other decisions. You should seek professional advice prior to making any investment decisions.
Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.