By: Kiana Danial Published: June 01, 2011 FXCM’s Speculative Sentiment Index (SSI) is a powerful indicator of market sentiment that has been pointing towards dollar losses for several days now.
|SSI Ratios Against the Majors | May 31, 2011, at 02:02 GMT|
FXCM has recently developed the Dow Jones FXCM Dollar Index Basket, which closely tracks the Dow Jones FXCM Dollar Index. The index basket was developed to allow forex traders to trade their opinion on the US dollar without needing to choose a specific currency to trade against. The index basket can easily be traded on an FXCM demo account by buying or selling the symbol “USDOLLAR.” FXCM plans to offer USDOLLAR trading on live accounts in the near future.FXCM Inc.’s (NYSE: FXCM) Speculative Sentiment Index (SSI) shows retail trader positioning in the forex market. By following the SSI, you can see how many traders are entering or exiting the markets. The SSI has a strong history as a contrarian indicator and can be used as a currency forecasting tool. By following trader positioning in a currency, the SSI can be used as a tool to see whether the recent moves in that currency are merely a correction or if they are likely to lead to a larger trend*. FXCM’s Speculative Sentiment Index has been gaining popularity among traders, analysts, and other currency watchers as a way to gauge forex market sentiment. Now it can also be used as an indicator for the US Dollar, as shown in the Dow Jones FXCM Dollar Index. If you have a live FXCM account, you can check the SSI twice a day inside DailyFX+ and get a deeper understanding of forex market sentiment. The SSI is also available every Thursday on DailyFX.com. *Please be advised that past results and/or performance is not indicative of future results. About FXCM Inc. FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide. At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. FXCM's UK subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Any opinions, news, research, analyses, prices, or other information contained is provided as general market commentary, and does not constitute investment advice. DailyFX has taken reasonable measures to ensure the accuracy of the content herein. However, DailyFX does not guarantee its accuracy, and will not accept liability for any loss or damage, including, without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information and your use of the charting indicator and EAs herein.
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