ISE ARTICLES
22
JAN
Currency Cycles: Balancing Risk & Reward
By Steve Meizinger
The recent global financial meltdown has turned many investors away from commonly practiced strategies like the “carry-trade” as they seek “safe-haven” in these uncertain times. What strategies can you employ to balance your risk and reward trade-offs? The financial markets are constantly looking ahead for information to price themselves. With the recent dramatic upheavals in the financial markets, hope has been replaced by despair. Read More

07
JAN
The Upside of Exchange-Listed FX Options
By Steve Meizinger
The concept of risk and reward goes way back. Some financial historians believe options were Created thousands of years ago and often used to mitigate the financial risks in the mercantile shipping business. The risk was transferred from those parties willing to pay premiums to reduce risk to those that received the premiums and tolerated additional risk. Though their exact origin remains uncertain, exchange-listed options are extremely versatile financial instruments. Today, options are listed on exchanges and available in many different asset classes. I will attempt to shed some light on foreign currency options, specifically, ISE FX Options. ISE FX Options allow you to hedge your US dollar exposure and implement your view on the US dollar versus the six major currencies. Read More

12
DEC
Alternative Strategies for Multi-Asset Class Trading
By Steve Meizinger
Profit & Loss
The global financial crisis of 2008 has had an inverse impact on the US dollar; as the crisis worsened, demand for the USD only grew. US investors have been selling large quantities of international stocks and bonds and bringing the USD back home to meet their liquidity needs. In order to feed this demand for cash, which is not being met in the short-term money markets, dollars are being purchased in the foreign exchange market creating even more demand for the USD. This has only further driven US investors to sell any and all international bids in stocks and bonds. Read More

20
NOV
FX Options: More Options for Spot Traders
By Steve Meizinger
It doesn’t matter what medium you are using to get your financial news, one thing has been fairly consistent—extensive coverage of the US dollar. Whether you are on your favorite financial website, blog, newspaper or television channel, you have most likely stumbled across headlines saying: “US dollar rallying”, “US dollar slumping” or “US dollar holding steady”. The foreign exchange market was created as a mechanism to facilitate global trade; it is a relative market. For example, currencies trade in pairs; therefore, you need to have two views, a bullish view on one currency and a bearish view on the opposing currency. Read More

03
NOV
The Credit Crisis: Other Options for Investors
By Steve Meizinger
The financial markets have entered a new phase in the global credit crisis, having recently been roiled by vicious headwinds from government responses to the situation. I will attempt to explain these developments and, more specifically, their implications for the currency markets. It’s too early to quantify the full extent of the current global crisis. Last fall of 2007, many financial analysts had estimated that the asset write-downs would be in the $200-400B range. By the fall of 2008, predictions for asset write-down have multiplied from those original estimates. Only time will tell what the actual impact will be. For investors analyzing the global currency market, it’s important to try to understand how governments are dealing with the global crisis. Read More

15
OCT
The Credit Crisis and the Foreign Exchange Market: What’s next for the U.S. dollar?
By Steve Meizinger
The global financial markets have recently experienced extreme selling pressure. Investors are left to ponder why are the financial markets so weak? Where and when did this contagious “financial disease” start? Do the financial markets really affect me? How will it run its course and when will it end? What’s amazing is that the foreign exchange markets are handling this “financial earthquake” very different from what investors would have expected just a year ago. Read More

10
OCT
FX Options: Low Correlation Investment Alternatives
By Steve Meizinger
Every day, the financial markets present exciting opportunities for individual investors. As an investor, is it possible to achieve long-term sustainable success? It is possible, but your first step is to build a comprehensive financial plan that is tailored to your financial goals and risk tolerance. In fact, you may only need to implement intermediate or short-term strategies to meet these objectives. These strategies should never conflict with each other, but rather, complement your overall financial plan. A good strategy to improving your odds for long-term success is taking into consideration, not only which assets fit your portfolio, but also the concept of low-correlated assets. Read More

02
OCT
Globalization of the Forex Market – New Trading Opportunities
By Steve Meizinger
Why are financial institutions monitoring the price trends of the foreign exchange market so closely? What is their objective? Why should you be concerned and how does this impact your portfolio? Are there trading opportunities that you should consider? How do options fit into FX trading? I will attempt to answer all of these commonly asked questions, as well as why investors need to start educating themselves about the foreign exchange market.Read More

08
MAY
Trading Currency Moves with ISE FX Options
By Steve Meizinger
Many aspects of life are relative. For example, when we speak about the weather and comment that the temperature is “hot” or “cold”, this is usually relative to the season and also the specific locality. Money is also relative. There are many different currencies in the world, which measure the cost of goods or services in that particular region or country. These currencies are all traded relative to another currency. I will attempt to explain foreign exchange trading and how it can be implemented using ISE FX Options. Read More