Japanese Housewives
Definition of 'Japanese Housewives'In the foreign exchange world, a collective term for the legions of Japanese housewives who resorted to currency trading in the first decade of the new millennium. With Japanese interest rates near zero percent for most of the decade, their motivation for currency trading was to increase the low returns on their portfolios. These homemaker-traders are also called "Mrs. Watanabes." |
|
Investopedia explains 'Japanese Housewives'Japanese housewives have had a discernible impact on currency markets. Bank of Japan officials said in 2007 that the housewives' trading activity helped to stabilize currency markets because of their tendency to buy on dips and sell into rallies. A significant amount of this trading was carried out through online margin accounts, which offered leverage of 20 to 100 times. Carry trades, which involve borrowing in low-interest rate currencies and investing in higher yield assets, were also a favored strategy for many of the Japanese housewives. |
Related Definitions
Articles Of Interest
-
The Credit Crisis And The Carry Trade
When boom times turned to bust, these trades proved devastating for traders and the broader markets. -
Currency Carry Trades 101
This strategy can provide returns even if the currency pair doesn't move a cent. -
The U.S. Dollar And The Yen: An Interesting Partnership
In order to make the USD/JPY relationship more understandable, we must look at the yen in terms of treasury bonds. -
The Future Of Cryptocurrency
The emergence of Bitcoin has sparked a debate about its future and that of other cryptocurrencies. Despite Bitcoin’s recent issues, its success since its 2009 launch has inspired the creation ... -
How Leverage Is Used In Forex Trading
Forex trading by retail investors has grown by leaps and bounds in recent years, thanks to the proliferation of online trading platforms and the availability of cheap credit. The use of leverage ... -
Washing Trades In A Canadian Registered Account
For Canadian RRSP accounts, washing same-day trades and using money market funds to bridge the gap over a multi-day trading period saves investors the exchange fee and will help their bottom ... -
The Effects Of Currency Fluctuations On The Economy
Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. The exchange rate of one currency versus the other is influenced by ... -
The Basics of Forex Leveraging
A closer look at the controversial topic of leverage in forex trading. -
What Causes A Currency Crisis?
Find out what can cause a currency to collapse, and what central banks can do to help. -
Top 8 Most Tradable Currencies
Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
Free Annual Reports