Currencies, interest, and things that move together

Read a currency price the right way round, see how interest rates link today’s and future prices, and learn why holdings that move together add risk.

Module 8 of 26, in the stage "How markets work". 6 lessons.

Lessons

1. Reading a currency priceFlip a currency quote the right way and treat interest-rate parity as a link between prices, not a forecast. 18 min.
2. Earning interest on currencies, and the crash riskTell the expected interest gap apart from what you actually make, and plan for the trade unwinding. 18 min.
3. When your holdings all move togetherUnderstand correlation and why spreading your money around can stop working in a crisis. 18 min.
4. The Australian dollar and your overseas holdingsSee how AUD/USD changes the Australian-dollar value of anything priced in US dollars, and what tends to move the AUD. 14 min.
5. Pips, lots and sizing a forex tradeSize a forex trade from a dollar risk and a stop measured in pips. 16 min.
6. Hedged or unhedged: the currency bet inside an overseas fundExplain what a currency-hedged fund does, roughly what hedging costs or earns, and when each version wins. 16 min.

Concepts covered

• Position sizing

Keep going

• Previous module: Reading a company’s numbers
• Next module: Crypto: buying coins versus betting on them
• All 26 modules and 157 lessons
• Open the first lesson in the course

General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.