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Dollar Index Futures Correlation & Minimum Trading Capital
Did you know the Dollar Index is one of the most illiquid markets that
EVERYONE should be watching?
So why can such a low-volume market control other markets 100-times its size?
Dollar Index Futures Correlation:
– World’s reserve currency
– Everything is settled in dollars
– Buy Crude Oil, sell it for a profit…..profit in USD
– Expiration on Euro….settled in DOLLARS
– What is the Gold denominated in? Dollar
– Very low volume market, so we don’t trade the DX
– We use the dollar for its simple negative correlation
– Crude Rising…dollar falls.
– FDAX falling….dollar rises
– Dollar is flat….everything is flat
– Dollar @ its open….everything else at their opens
– Dollar is trending….everything else trends…opposite way.