How to Trade Markets that Don't Make Sense

Jun 29, 2022

By The Small Exchange


Though outliers are so named due to their rare appearance in data sets, the unlikely does have to occur sometime. Right now, forex and interest rate markets are trading in one of those outlier environments as the euro (EUR/USD) closes in on parity with the US dollar for the first time since 2002. Experienced derivatives traders Jermal and Frank give you the historical data on the market's current outliers, and they show you how they might trade them.

Finally, the trade doesn't end at order entry; the guys walk through some scenarios of how you might defend a trade in, say, USD that has gone a little further out before coming back to normal.


0:05 How to Trade Markets That Don't Make Sense

0:40 Euro Hit New Lows Today Going Back to 2022

2:30 There's Now an Almost 30% Chance of Parity by 2023

4:10 The Yield Curve Went Inverted this Week

4:30 10YR Rates Usually Trade Above 2YR Rates

5:15 Whatever Your Strategy, Be Ready for Trade Defense

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