Basket Of USD Shorts

Basket Of USD Shorts
A forex trading strategy that involves the sale of the U.S. dollar against a group of currencies, rather than against a single currency. The currency group involved in such a trading strategy is called a "basket."

This strategy would typically be employed by traders who are bearish on the U.S. dollar, and would prefer to have a short trading position on it. The basic rationale for using a basket to short the U.S. dollar is risk mitigation through diversification. In the event that the U.S. dollar strengthens appreciably, given that it may appreciate at differing rates against various currencies, the loss on a short position may be significantly lower if multiple currencies are involved in it, as opposed to a short position using a single currency.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Dingo (Disney) — Pour les articles homonymes, voir Dingo. Dingo Personnage Disney …   Wikipédia en Français

  • Laugh-O-Gram — Films Inc Création 23 mai 1922 Disparition juillet 1923 (faillite) Fondateurs Walt Disney Personnages clés Ub Iwer …   Wikipédia en Français

  • Mickey Mouse — Pour les articles homonymes, voir Mickey. Mickey Mouse Personnage Disney …   Wikipédia en Français

  • Dog Trouble — For the dog named Trouble which had an estate worth $12 million USD, see Leona Helmsley. Dog Trouble Tom and Jerry series Dog Trouble reissue title card …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.