Given the wider spreads and reducedliquidity of some exotic currencies, some strategists feel the longer-term time frame is a better choice than day trading in this arena. Dolan cautions those nterested in expanding into the exotics.
“For the retail guy, the risks probably outweigh the rewards,” he says. “If they do get into it, it has to be more of a strategic and longer-term play.
” Olsen agrees on the time frame outlook.
“While a euro/dollar trader might trade a two- to three-hour position, a yuan play could last two to five weeks,” he says. “Trades put on in emerging market currencies are different in nature, and tend to be on more of a long-term time frame.”
Subscribe to:
Post Comments (Atom)
Post a Comment