VIEWS: 9 PAGES: 3 CATEGORY: Business & Economics POSTED ON: 9/6/2010
Ask a commodity trading advisor (CTA) what makes a good market to trade and he will tell you any market that moves, is liquid and is non-correlated with the other markets they are trading. Well the foreign exchange sector has that in spades and a few other attributes as well, which makes it the anchor for many diversified trading programs and a stand alone sector that can be traded in many different ways. In forex you are measuring the currency of one country or region against another. Each country or region has an interest rate associated with its currency. While the deep liquidity of forex allows CTAs to trade numerous strategies and time frames, it also allows them to take on additional assets without altering their approach. While most currency-based CTAs trade on technicals as opposed to fundamentals the universe of fundamental factors in currency markets is larger than most sectors.
Forex: One sector, multiple strategies Daniel P Collins Futures; Sep 2010; 39, 9; Docstoc pg. 52 Reproduced with permission of t
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