Apologies if this should be in the newbie section, I really wasn’t sure.
from what I have been reading it sounds like if the USA defaults on its debts,
then the dollar will take a big dive downwards.
Great! If I Want to go for a short sell and grab a few sweet pips.
However for this to work there has to be someone buying them right ?
Am I not thinking straight and missing something important here ?
could it be big investors buying them and taking a risk waiting for the dollar to go up again,
would a lack of buyers only be a problem with very large position sizes?
Don’t automatically assume that if a default happens the dollar would tank. At least not right away. The dollar could very possibly climb in a serious risk off move to cash out of the equity markets.
Now, for who takes the trade, since you are a retail trader your broker will take the other side. At least to start.
That argument actually makes a lot of sense. It’s easy to think that the dollar will selloff while the US government is on a shutdown, but there are no traders willing to take the opposite side of those trades. This is probably why dollar pairs are just stuck around their current levels. Might be better off to wait for something to actually happen, IMO.
My bias has been short for a week and a half on the U/J, but all closed up right now. Strangely quiet times. Charts are saying big changes ahead.
On another front, I applaud your overbearing snarkasm. I, for some reason, thought we had gotten past this. I have no clue as to how I ever came to that conclusion. I can see the error in my ways.
