Correlated Indices, ETFs and Currency Strategies

Cross trading with a touch of Arbitrary Hedging -

In the financial markets, the ideal approach that investors tend to diversify their respective investment portfolio to meet goals or at least achieve a higher degree of return nearest to their financial objectives over a specified period of time. However, at the course of market conditions, certain time frames of exposure does not necessary follow due to changes in market sentiments and a variety of globally interconnected fundamentals that will always drive price action.

Weighing in which among these factors would weigh heavier which would likewise dominate the market place. Whenever these market drivers are in play, wider price ranges in both market direction could be difficult to identify and even to anticipate the session's price changes due to volatility, especially when they are fundamentally driven instruments either in stocks, currency or commodity. Let alone in stocks and commodity, a certain degree of difficulty selecting the right correlated financial instrument would be hard to do. With over 1700 ETFs to choose from would be similar to a novice trader trying to find a needle in a haystack, without the assistance of an experienced mentor /
trading partner is just an example.

However, ETFs are only one of the alternatives investors can consider contrary to the fact that ETFs do have some trading flaws especially so when trading limits and halts certain stocks are concerned. Although, this maybe only be a concern for inexperienced trader / investors not knowing what to do when extreme volatility are present in the market, the likes of Black Monday. That is why, we do encourage to spread investment risk not by stock or currency choices alone but addressing the overall investment portfolio. And at the same time "Capitalizing on Liquidity" that the Foreign Exchange market provides on extreme market volatility only when properly / Timely executed. Without these guidelines the end-results could be financially dangerous.

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Correlated Indices, ETFs and Currency Strategies