If you’ve traded stocks, you’re probably familiar with all the indices available such as the Dow Jones Industrial Average (DJIA), NASDAQ Composite Index, Russell 2000, S&P 500, Wilshire 5000, and the Nimbus 2001.
Oh wait, that last one is actually Harry Potter’s broomstick.
Well if U.S. stocks have an index, the U.S. dollar can’t be outdone.
For currency traders, we have the U.S. Dollar Index (USDX).
And to be technically correct, the ICE U.S. Dollar Index.
The U.S. Dollar Index consists of a geometric weighted average of a basket of foreign currencies against the dollar.
Say whutttt!?!
Okay before you fall asleep after that super geeky definition, let’s break it down.
It’s very similar to how the stock indices work because it provides a general indication of the value of a basket of securities.
Of course, the “securities” we’re talking about here are other major world currencies.
Learn to Day Trade Forex
If you’d like to earn extra income trading on the Forex market, consider learning how to currency trade with Forex Smart Trade. With their super-accurate proprietary trading tools and best-in-the-business, personalized one-on-one training, you’ll be successful. Check out the Forex Smart Trade webinar. It shows one of their trader’s trading and how easy, intuitive, and accurate the tools are. Or try the Forex Smart Trade introductory trading trial for just TEN dollars.
Currency trading is very risky. My results are not typical. We provide an introductory trading trial so you can assess the value of our indicators and tools for yourself.
www.ForexSmartTrade.com
