For example, if the currency underlying one of
your trades moves in the opposite direction of what you believed would happen, leverage will greatly amplify the potential losses.
Not exact matches
Although the oil price and the dollar have
moved in tandem for the last few weeks, the two generally tend to
trade in the
opposite direction, as a stronger dollar encourages non-U.S. investors to sell oil and crude - importing countries to curtail their purchases.
The VIX reflects traders» expectations for the magnitude of future
moves on the S&P 500, and it tends to
trade in the
opposite direction of the index.
There are a variety of investment products based on it, including the iPath S&P 500 VIX Short Term Futures exchange -
traded note (VXX) and the ProShares VIX Short - Term Futures exchange -
traded fund (VIXY) and, crucially, inverse products that
move in the
opposite direction of what the VIX does.
The bearish harami is a similarly
traded pattern, signaling market psychology that is likely to
move price
in the
opposite direction.
Wong also suggested using stop - loss orders to limit losses as well considering inverse exchange
traded funds like the Horizons Betapro S&P / TSX 60 Inverse ETF, which is designed to
move in the
opposite direction of the S&P / TSX 60 Index.
I personaly noticed when the «cowboys» = USA traders come onto the market the whole hell gets lose and gods help you if you are sitting on a
trade when they decide to
move every currency
in the
opposite direction to yours!