| Advanced Forex Strategies
• Yield plays through currencies (carry trade) i.e. - buy the high yielder, NZD against others - JPY, GBP, CAD,USD
• Cross currency plays which allow longer term strategy and less volatility ie EUR/JPY, EUR/GBP, AUD/NZD.
• Hedging -off laying exchange risk against a known future foreign currency receipt or payment. Depending on your view of the currency you can 'partially' hedge (less than 100% of your risk) or over hedge (greater than 100% of your risk) to protect or enhance that risk.
• Model trading - trading with the use of 'technical' or mathematical based systems which give buy/sell signals or entry/exit points based on historical price data.
Some of these technical indicators are:
- Trendlines
- Moving averages
- Oscillators
- Bollinger bands
- Relative strength index (RSI)
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