We're happy to announce that FXCM has partnered with Dow Jones Indexes to release the Dow Jones FXCM Dollar Index (USDOLLAR)!
The Dow Jones FXCM Dollar Index Basket allows you to take advantage of the US Dollar appreciation and depreciation. Do you believe the US dollar is likely to appreciate? You can buy the DJ FXCM Dollar Index Basket and benefit if it gains against four currencies.
Think it will head lower? Selling is just as easy.
The Dow Jones FXCM Dollar Index is composed of 4 currencies in equal weightings.
The Dow Jones FXCM US Dollar Index avoids outdated currency pair selection and confusing methodology to produce a more straightforward design. The index basket is designed to be as easy to understand as it is to trade. At inception date, the index reflects an equivalent $10,000 long position against the euro, British pound, Japanese yen, and Australian dollar. The value of the index is subsequently the average value of those US Dollar positions. If the US Dollar rallies 100 pips against the euro, Australian dollar, Japanese yen, and British pound, the index will appreciate by approximately 100 points.
Trading the Dow Jones FXCM Dollar Index Basket
The USDOLLAR symbol was added to demo accounts with FXCM LLC yesterday, and the symbol should make it onto all demo accounts this weekend. If you don't see it in the dealing rates window, you can add it by clicking on the Symbols button at the top of the platform. If you don't have a demo, then click on the button below to register:
I've been told that the charts may possibly be backfilled by this week. In terms of live trading on the index, it will be added to live accounts eventually.... possibly within a couple of months but still not certain. The index can also be found on most financial websites by searching for the ticker symbol USDOLLAR, i.e. Yahoo Finance.
Here is what it will look like once added to the dealing rates window:
The screenshot of the USDOLLAR basket is from yesterday when the index value was at $9,440. This is the USD value of the 4 currency pairs in the basket. Since the initial starting value of the index was $10,000 you can see that the US Dollar has lost value since the index was initially launched. The current USDOLLAR value is around $9,504 (as of a few minutes of the post) so you can tell that the USDOLLAR has gained in value since yesterday. The new index allows you to easily speculate on the direction of the dollar versus a basket of pairs. Let me know if you have any questions.