Currency Band

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Dictionary Says

Definition of 'Currency Band'

A currency system that establishes a trading range that a currency's exchange rate can float between. A currency band represents the price floor and ceiling within which the price of a given currency can trade, and is like a hybrid of a fixed exchange rate and a floating exchange rate. The currency band restricts how much the price can move relative to a reference currency or currencies.
Investopedia Says

Investopedia explains 'Currency Band'

If the value of the currency begins trading outside the band, then the country of that currency will usually revert to a fixed exchange rate. This usually stabilizes the currency's price back within the band. The Chinese yuan is an example of a currency that moves within a currency band.
Search results for

'Currency Band'

  • Inside Day Bollinger Band Turn Trade

    http://www.investopedia.com/articles/forex/06/BBInsideDay.asp
    ... by either selling high prices (higher Bollinger band) or buying low prices (lower
    Bollinger band). ... 1. Look for the currency pair to hit or come very close to ...

  • Using Bollinger Band "Bands" To Gauge Trends

    http://www.investopedia.com/articles/trading/05/022205.asp
    ... By extending their functionality through the use of Bollinger band "bands", traders ...
    Boris Schlossberg. Boris Schlossberg is the director of currency research at ...

  • Inside Day Bollinger Band Turn Trade

    http://www.investopedia.com/articles/forex/06/bbinsideday.asp
    ... by either selling high prices (higher Bollinger band) or buying low prices (lower
    Bollinger band). ... 1. Look for the currency pair to hit or come very close to ...

  • How Inflation-Fighting Techniques Affect The Currency Market

    http://www.investopedia.com/articles/forex/11/central-bank-inflation-fighting.asp
    ... prices. As expected, speculation of further flexibility in the trading band
    helped the country's currency to appreciate. (For more ...

  • How Forex Speculators Profited From Famous Currency Meltdowns

    http://www.investopedia.com/articles/forex/11/currency-meltdowns-speculative-raids.asp
    ... of government to hold the pound above the lower band would fail. The Treasury tried
    buying pounds to stabilize and prop up the falling currency, but to no avail ...

  • Forex Investing: How To Use The Golden Cross

    http://www.investopedia.com/articles/forex/11/how-to-profit-with-the-golden-cross-in-forex-trading.asp
    ... For more, see Using Bollinger Band “Bands” To Gauge Trends.) The result is a great ...
    to 1. In Figure 6, we can see that the AUD/USD currency pair skyrockets ...

  • How To Use The Forex Pure Fade Trade

    http://www.investopedia.com/articles/forex/08/pure-fade-trade.asp
    ... RSI breached the 30 oversold mark, and the price hit the third standard deviation
    Bollinger band, which put the currency on our radar screen, where we looked ...

  • The "Turn To The Carry" Trade

    http://www.investopedia.com/articles/forex/08/turn-to-carry.asp
    ... In the middle of May, we see the currency pair close above the 2SD-1SD Bollinger
    band, and we enter long on the close of the candle at 81.92. ...

  • Capture Profits Using Bands And Channels

    http://www.investopedia.com/articles/forex/06/BandsChannels.asp
    ... almost 150 pips in the day's session as the currency plummets from 0.7150 to an
    even 0.7000 figure. Notice that the price action touches the lower band at that ...

  • The Big Mac Index and Currency ETFs

    http://stocks.investopedia.com/stock-analysis/moneyshow/TheBigMacIndexandCurrencyETFs.aspx
    ... NEXT: Trade Ideas for Two Major Currency ETFs. ... CYB did close above its weekly Starc+
    band, so now is a high-risk time to buy; Though weekly volume has increased ...

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