Category: currencies

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Binary options: Mitigating risks from information barriers in the foreign exchange markets.

When trading binary options, I am trading my expectations on certain events. I am entering contracts where one side of the contract has an expectation of some event, x, occurring and the other side of the contract has an expectation of some event, y, occurring. I am not trading a commodity, share, or currency. I … Continue reading Binary options: Mitigating risks from information barriers in the foreign exchange markets.

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Binary options: NADEX contracts go dark at 8:30 am EDT. Inflation report looked most messy.

The primary question I ask myself when looking at a binary options contract for foreign exchange is, “Why would anyone buy euros using US dollars?” I had that question answered in part by the report on changes in U.S. consumer prices released half an hour ago by the U.S. Bureau of Labor Statistics. According to … Continue reading Binary options: NADEX contracts go dark at 8:30 am EDT. Inflation report looked most messy.

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Why should you care about what others are betting in the markets?

Are markets valid? Lately I have been questioning the validity of markets, specifically whether markets are the result of organic interactions between humans or whether markets are State-constructed funnels for moving portions of monetary energy from consumers to the government via taxes. I have to be mindful that markets are not some linear, mechanical construct … Continue reading Why should you care about what others are betting in the markets?

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Currency wars: Can the West afford an increasingly developed Africa, Asia, and Latin America?

The takeaway …. As I get ready for the release of the jobs report, a thought on the relationship between the world’s major geographic regions hit me. Do western nations, primarily the United States, the United Kingdom, and Eurozone, really want to see a developed Africa, Asia, or Latin America? Would development of these areas … Continue reading Currency wars: Can the West afford an increasingly developed Africa, Asia, and Latin America?

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Binary options: What weighed on trader minds last night; first glance at Global South FX rates.

What has been weighing on the minds of binary options traders? Traders who purchased the NADEX binary options contract for the EUR/USD>1.1340 expiring at 11pm last night won their bet. The contract closed at 1.13761. The idea that the European Central Bank will cut its interbank rates tomorrow likely influenced traders’ outlook on the trajectory … Continue reading Binary options: What weighed on trader minds last night; first glance at Global South FX rates.

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Binary options: Eyes on the Global South. Not too surprised about last night’s EUR/USD close.

I am going to start paying more attention to the Global South. I flirted with what is happening in the Caribbean and Africa regarding their currencies and central banks and it is time to do so again. Granted, their currencies are considered by the west to be “exotic” pairs, but you cannot ignore the shifts we are seeing particularly on the Continent. Continue reading Binary options: Eyes on the Global South. Not too surprised about last night’s EUR/USD close.

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Federal Reserve: Is understanding the Fed that difficult or even useful?

The Federal Reserve as narrative promoter … While not a political organization, the Board of Governors of the Federal Reserve System as an agent of the Congress, is responsible for crafting a narrative around the soundness of the United States currency. The centerpiece of the soundness narrative is found in 12 USC 225(a) where Congress … Continue reading Federal Reserve: Is understanding the Fed that difficult or even useful?

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I don’t think Trump wants to withdraw from the globe. Currency outlooks should reflect this.

Calling Trump’s bluff … European and British banks have been and still are collateralizing Africa and Asia for centuries. Since the mid 1940s, the United States has been providing the military and mercenary duties necessary for protecting European and British extraction of resources from these areas of the world. (Ready to step up your trading … Continue reading I don’t think Trump wants to withdraw from the globe. Currency outlooks should reflect this.