A currency trading strategy that involves selling U.S. dollars short against a group or "basket" of other currencies. Instead of trading one currency against another, this strategy allows traders to reduce risk through diversification. When the dollar strengthens, it appreciates at different rates against other currencies. The "basket of shorts" strategy protects a trader from the risk of selling the dollar short against a single currency that experiences an unusually large drop in value.
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A forex trading strategy that involves the sale of the U.S. dollar against a group of currencies, rather than against a single currency. The currency group involved ...
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basket option. basket of USD shorts · basket order. Definition. A type of option whereby the underlying assets are typically a basket of specific commodities, ...
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I thought it can't be looking good for the USD in the next six months, so I set up a basket of USD shorts. Is that irrational? It was certainly based on a hunch.