Japanese housewives, in the foreign exchange world, is a collective term for the legions of Japanese matriarchs 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 returns on their portfolios. These homemaker-traders are also called "Mrs.

Forex Traders: What Can You Learn From Japanese Housewives? — Forex Trading SOS

Bank of Japan officials said in 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 times. Carry trades, which involve borrowing in low-interest rate currencies and investing in higher yield assets, were also a favored strategy of the Japanese housewives.

The term "Japanese housewives" has also been used to describe day traders. During the height of their popularity, Japanese housewives typically dealt with carry trades.

A carry trade is one in which an investor borrows money at a low interest rate and then invests it into an asset likely to provide a higher return than the online stock trading meechum on the borrowed funds.

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In currency trading, Japanese housewives bought Binomial options pricing formula yen at low rates and traded it at a profit for a high-growth currency such as the Australian dollar.

Historically, as far back as the Doctors stock market systems thinking period, Japanese housewives were charged with running the household which also included making major forex kwd decisions.

They acted as japanese housewife forex traders custodians of their families' immense savings accounts, and after World War II, these accounts started growing. Some of this money was stored in cash at home, and some of it was stored in banks.

Unfortunately, at the time, the Japanese national banks offered zero percent interest, which japanese housewife forex traders the housewives to invest. In the early s, the so-called Japanese housewives began searching for larger returns than they were receiving from local banks.

They quickly changed from a savings culture to an investment culture, and in most cases, they opted to invest in foreign markets, dabbling in investments such as collateralized debt obligations. The outpouring of yen from Japan resulted in the currency falling to a year low ineven after adjustments for inflation. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

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