Advanced Forex Trading Concepts

Forex trading can be done using algorithms and other more advanced strategies. See what some of the most popular strategies are and how the pros use them.

aerial top view container ship runing have wave in green sea, bangkok, thailand.

Countertrade: Definition, Types, and Examples

Updated Oct 03, 2021

Currency Swap: A derivative contract that involves trading interest paymentsâand sometimes principalâin different currencies.

Currency Swaps: Definition, How and Why They're Done

Updated May 30, 2021

Uncovered Interest Rate Parity (UIP): A theory that the difference in two countries' interest rates is equal to the expected changes between their currency exchange rates.

Uncovered Interest Rate Parity (UIP): Definition and Calculation

Updated Oct 11, 2023

Hands of Businessman working with business document and laptop on the table.

Hedging Risk With Currency Swaps

Updated Jan 01, 2022

Natural Hedge: Definition and Examples in Business and Finance

Updated Sep 30, 2022

Currency Arbitrage: Definition, Types, Risk and Examples

Updated Jun 22, 2023

Currency Convertibility: What it Means, How it Works

Updated Aug 05, 2022

Interest Rates and Asset Prices

Covered Interest Arbitrage: Definition, Example, Vs. Uncovered

Updated Sep 08, 2022

Close-Up of Handshake of Businesswoman and Businessman

Aggregate Risk: What it Means, How it Works, Example

Updated Jun 30, 2022

banker meeting with client in office

Back-to-Back Loan: Definition, Purpose, and Examples

Updated Apr 06, 2022

A forex arbitrage trader reclines in an office chair as they watch four monitors showing changes in international interest rates.

Uncovered Interest Arbitrage: What It Is, How It Works

Updated Jul 27, 2022

A smartphone displays the Bitcoin Cash market value on the stock exchange (Dec. 2018)

Cash Market: Definition Vs. Futures, How It Works, and Example

Updated Jun 06, 2024

Commodity Prices And Currency Movements

Updated Dec 28, 2023

Fiat Money vs. Commodity Money: Which Is More Prone to Inflation?

Updated Dec 01, 2022

Gold bars at Korea Gold Exchange store in Seoul, South Korea.

Gold: The Other Currency

Updated Jan 19, 2023

How Currency Risk Affects Foreign Bonds

Updated Jan 26, 2022

The Pros and Cons of a Fully Convertible Rupee

Updated Jan 17, 2022

Foreign Currency bills laid out

How the Money Market Hedge Works

Updated Jun 10, 2024

How Does the Price of Oil Affect Russia's Economy?

Updated Sep 14, 2022

Pile of Canadian Bills With One Hundred Dollars on Top

How & Why Oil Impacts The Canadian Dollar

The Investopedia Team

Updated Mar 06, 2022

Biased Expectations Theory: What It is, How It Works

The Investopedia Team

Updated Jun 29, 2022

Open Position Ratio: What it Means, How it Works, Example

Updated Oct 05, 2022

Rows of flags of many nations flying from flagpoles

Forex Options Trading: Primary Types, Examples

Updated Dec 15, 2023

3D rendering of US Dollar and Japanese Yen currency exchange with chart background.

The U.S. Dollar and the Japanese Yen: An Interesting Partnership

Updated Jun 02, 2024

Forex Automation Software for Hands-Free Trading

Updated Jan 29, 2022

A ship approaches an Exxon Mobil oil rig in the Gulf of Mexico.

How Petrodollars Affect the U.S. Dollar

Updated Jun 19, 2024

Spending a few dollars here and there doesn't seem like it will have an effect on your long term financial goals, but those frequent low-cost purchases can add up rather quickly if left unchecked. You would be wise to remember that a dollar today is worth more than a dollar tomorrow.

Strong Dollar: Advantages and Disadvantages

Updated Aug 11, 2023

Ronald Reagan and Yasuhiro Nakasone meet in London for Plaza Accord negotiations, 1984

The Plaza Accord's Effects on Currency Markets

Updated Oct 06, 2023

Bond Spreads: A Leading Indicator For Forex

Updated May 25, 2022

Man with a beard sits at a kitchen table holding a smartphone in front of a laptop and both screens are showing stock charts. A child sits in the background.

How to Use an Arbitrage Strategy in Forex Trading

Updated May 20, 2024

Currency Binary: What It is, How it Works, Examples

Updated Jun 27, 2022

Statue

How the Balance of Trade Affects Currency Exchange Rates

Updated Aug 22, 2023

Forex Arbitrage: Meaning, Types, Challenges

Updated Jul 14, 2022

Currency trader checking prices

Covered Interest Rate Parity: Definition, Calculation, and Example

Marshall Hargrave

Updated Apr 11, 2024

Finance Background

How U.S. Stock Prices Correlate to the Value of the U.S. Dollar

Updated Mar 15, 2022

Forward Points in Currency: The Basics and Examples

Updated Dec 26, 2020

Currency exchange sign

Forward Exchange Contract (FEC): Definition, Formula & Example

Updated Jun 19, 2024

Board showing currencies

Triangular Arbitrage: Definition and Example

Updated Mar 19, 2024

Currency Exchange

Introduction to the International Fisher Effect

The Investopedia Team

Updated Oct 03, 2022

Forex trade

Sterilized Intervention in Forex: What it Means, Examples

Updated May 27, 2022

WM/Reuters Benchmark Rates: Definition and Use For Portfolios

Updated Sep 29, 2022

What Is Cross Currency Triangulation? How It Works and Example

Updated Jan 17, 2022

Financial Stock Exchange Market Display Screen Board on the Street

What Do "Outrights" Mean in the Context of the FX Market?

Updated May 23, 2024

Leads and Lags: Definition, Example, Risks

Updated May 26, 2022

An appointment book shows a marked date with a note to exchange euros for U.S. dollars and laying around the book are stacks of various currencies.

Settlement Risk: Definition, 2 Main Types, and How To Reduce It

Updated May 25, 2022

Currency scale.

EUR/CHF (Euro/Swiss Franc) Relationship: What it is, How it Works

Updated Aug 25, 2021

Graph

Inflation Hedge

Updated Jan 04, 2022

Blue financial stock exchange background.

Crawling Peg Definition, Purpose, Effect on Currencies

Updated Jun 07, 2022

Forex trader analyzing currency pairs.

Forex Trading With Bitcoin: How Does It Work?

James Garrett Baldwin

Updated Jan 11, 2024

How Are NDFs (Non-Deliverable Forwards) Priced?

Updated Jun 06, 2024

Tornado of money over cityscape.

Beggar-Thy-Neighbor: Meaning and History in Forex

Updated Jun 20, 2022

Automatic Execution: What It Is, How It Works

Updated Nov 23, 2022

World Currency Rates

Money Market Hedge: Definition, Strategy, Process, and Example

Updated Sep 18, 2022

Business team deal on a stock exchange.

Local Exchange Trading System: What it Means, How it Works

Updated Sep 30, 2022

Business woman sitting at a desk working in an office

Currency Overlay: What It Is, How It Works

Updated Jan 05, 2024

Currency Risk Sharing: What It is, How It Works, Example

Updated Apr 06, 2023

China's State Administration of Foreign Exchange (SAFE) Overview

Updated Jul 31, 2022

LIBID vs. LIBOR: What's the Difference?

Updated Oct 06, 2022

Currency War: Definition, How It Works, Effects, and Example

Updated Mar 12, 2024

Currency Basket: What it is, How it Works, Example

Updated Apr 21, 2022

USD

What Happens to the U.S. Dollar During a Trade Deficit?

The Investopedia Team

Updated Sep 30, 2022

Currency Warrants

Updated Nov 10, 2022

Dual Currency Service

Updated Jul 30, 2022

Trading Currency Futures vs. Spot FX: What's the Difference?

Updated Jun 06, 2024

Forward Discount: Definition, Calculation Formula, and Example

Updated Jun 15, 2022

Guide to Forex Trading

Strategy & Education