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: 64 minutes
* Level: Advanced
* Short, easy-to-digest lessons
* Practical, interactive exercises
* Engaging videos and graphics
* Quiz to check your understanding
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.’
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is not directed at residents of countries where its distribution, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
IG is a trading name of IG US LLC (a company registered in Delaware under number 6570306). Business address, 1330 W Fulton, Chicago, IL 60607. IG is a registered RFED with the Commodity Futures Trading Commission and member of the National Futures Association (NFA ID 0509630).
IG US accounts are not available to residents of Ohio.