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Canadian Dollar Index - CAD Index

Canadian Dollar Index Investing

Type:

PCI

Instrument : &CAD_Index

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0
Leverage 1:100
Margin 1000
Calculation base
Status: Closed Trading
Change:
Prev. closing
Open price
Today, max.
Today, min.

Canadian Dollar Index Description

The Canadian Dollar Index (CAD Index) demonstrates the connection between the Canadian dollar (CAD) and other prominent currencies. Given that the CAD is classified as a commodity currency, its value is notably influenced by commodity prices. Additionally, a crucial factor is its extensive trading partnership with the United States. This relationship becomes evident upon closer examination.

In cases where trade volumes diminish due to various reasons, there could be adverse implications for CAD exchange rates and the CAD index.

The CAD Index is a useful tool for tracking the performance of the Canadian dollar and for analyzing trends in the foreign exchange market. It is a reliable indicator of the value of the Canadian dollar and is a transparent and liquid index.

Advantages and Key Points of CAD Index

  • The CAD Index is a weighted average of the exchange rates of the Canadian dollar against six major currencies: the euro (EUR), US dollar (USD), British pound (GBP), Australian dollar (AUD), Swiss franc (CHF), and Japanese yen (JPY).
  • The weights of the currencies in the index are determined by their relative importance in trade and investment between Canada and other countries.
  • The CAD Index is a reliable indicator of the value of the Canadian dollar and is calculated using a consistent methodology.
  • The CAD Index is also a transparent index, with the methodology for calculating it being publicly available.
  • Additionally, the CAD Index is a liquid index, with there being a lot of trading activity in it. This makes it easy to buy or sell CAD Index contracts.
  • The CAD Index can be used to track the performance of the Canadian dollar and to analyze trends in the foreign exchange market.
  • The CAD Index can also be used to make informed trading decisions.
  • Changes in interest rates: When interest rates in Canada rise, the CAD Index tends to appreciate. This is because investors are more likely to invest in Canadian assets when interest rates are higher.
  • Changes in economic growth: When the Canadian economy is growing strongly, the CAD Index tends to appreciate. This is because investors are more likely to invest in Canadian assets when the economy is doing well.
  • Changes in commodity prices: Canada is a major exporter of commodities, so changes in commodity prices can have a significant impact on the CAD Index. When commodity prices rise, the CAD Index tends to appreciate.
  • Political events: Political events in Canada or other countries can also affect the CAD Index. For example, if there is a political crisis in Canada, the CAD Index could decline.

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Structure

Parameters

Trading hours

Structure

PCI Components and their volume
Swipe table
&CAD_IndexAssetVolume / 1 PCIPercentageVolume (USD) / 1 PCIUnit of measurеment
Base part1CAD1005.912080.000800.0000CAD
Quoted part1AUD251.21419.5500195.5000AUD
2CHF179.69419.5500195.5000CHF
3EUR164.35418.6400186.4000EUR
4GBP129.53519.5500195.5000GBP
5JPY23031.92419.5300195.3000JPY
6USD31.8003.180031.8000USD

Parameters

PCI main trading conditions
Swipe table
The volume to calculate Swap and 1 pip value
1
The size of 1 pip
0.00001
Margin in USD for the volume and leverage of 1:100
8.13 USD
Creation date
2015-01-29
StandardBeginnerDemo
Fixed spread, pip
Floating Spread, pip
Order distance, pip
Swap (long/short) in pips on Vol
Available
volumes
The value of 1 pip in USD for the Vol

Trading hours

PCI active trading hours
Week dayServer time (CET)Local hours
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
How can PCI be applied in trading?
Limit volumes (USD) for base and quoted parts = 1000.00 ; 1000.00.

To trade PCI instruments offered exclusively by IFC Markets, you need to open a free account and download the NetTradeX platform.

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