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Strategy Inc - 10.00% Series A Perpetual Stride Preferred StockStrategy Inc - 10.00% Series A Perpetual Stride Preferred StockStrategy Inc - 10.00% Series A Perpetual Stride Preferred Stock

Strategy Inc - 10.00% Series A Perpetual Stride Preferred Stock

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MSTR GOES 'BATSHIT STRATEGY', SHED 65% in 12 MONTHS. HERE'S WHY.Strategy stock ( traded as NASDAQ:MSTR ) has experienced dramatic volatility and a downward trend over the past 6 months, shaped by both technical factors and its close link to the cryptocurrency sector, particularly Bitcoin.​ Technical Analysis Strategy Inc stock saw significant declines over the last half-year and twelve-months periods, dropping nearly 65% from its highs. The technical readings depict a persistently bearish scenario:​ The stock plummeted from $543 per share (reached a year ago) and from around $457 reached in May 2025 to $195 in November, marking a decline of more than 50%.​ Relative Strength Index (RSI) metrics remain deep in oversold territory; recent values are in the teens and twenties, indicating very low momentum and signaling a potential exhaustion in selling pressure.​ Key moving averages over the 50-, 100-, and 200-day periods all show substantial price declines, and the stock is trading well below all these averages.​ Were you hoorayed recently in October (with hopium of 140K and above for bitcoin) but NASDAQ:MSTR has started so-called Uptober - under its major support - 52-week SMA (which was previously successfully broken in September, 2025). Model 2020/21 has repeated in 2024/25: after the first swing-high printed, no new high anymore were posted - see green/red marks on the chart (Bitcoin did it in both cases). Technically, Strategy Inc is at or near multi-month lows, having broken several support levels. Short-term momentum oscillators and slow stochastic readings remain extremely low, emphasizing ongoing market weakness.​ Fundamental Developments On a fundamental basis, Strategy Inc continues to be strongly correlated to crypto and digital asset movements, as its financials are heavily exposed to Bitcoin:​ The decline mirrors the drop in Bitcoin prices over similar periods, given the company's massive holding of the digital currency on its balance sheet.​ Revenue and operating performance are relatively stable compared to its crypto-linked metrics, but shareholders largely view NASDAQ:MSTR as a proxy for Bitcoin exposure, which adds extraordinary risk and volatility and (what important) an extra large "hopium" for NASDAQ:MSTR The company regularly receives coverage from major investment analysts, though consensus remains divided due to the unpredictability of its underlying asset base.​ Significant risks remains also if crypto markets continue their decline, which could amplify volatility and downside risk further.​ Conclusion Over the past 6 - 12 months, Strategy Inc stock has dramatically underperformed, mirroring crypto sector volatility and enduring technical weakness. While analysts see sizeable rebound potential, future prospects are highly sensitive to both digital asset price movements and broader market trends. Investors should approach with caution, given both the technical oversold conditions and the fundamental dependence on Bitcoin. Tehnically saying, NASDAQ:MSTR immediate support could be seen in 145-180 range. ​ -- Best wishes, @PandorraResearch Team
NASDAQ:MSTR
by PandorraResearch
Exited 75% of my short trade - relief rally incoming?Before you ask me if I am crazy for closing my short and expecting a bounce, you should know I caught the exact top in MSTR at $560; when people were falling over themselves to buy this ponzi (see linked trade idea). The bulls laughed at that trade when I took it, but it's been one of the best shorts yet. Now that we are down 66% I have closed 75% of my short position and I have tightened up my stop loss as I expect there to be a relief rally soon. Could there be a long trade to hadd here? Possibly. I would wait for a change in market structure first. A reclaim of $200 and this could catch a bid. BTC just tanked below 90k, it needs to stabilise first. And this could be good to go with a defined stop loss. Not financial advice, do what's best for you!
NASDAQ:MSTR
by NoFOMO_
16
$MSTR monthly -- Long TermI don't own NASDAQ:MSTR shares and I do not plan to trade this name. I chart NASDAQ:MSTR to gauge CRYPTOCAP:BTC , which I do long. I'm counting NASDAQ:MSTR as in a Primary Wave correction. Wave ABC correction looks like a flat. AB = CD projects to $146. Wave should not overlap Wave so this count is invalidated if NASDAQ:MSTR drops below $131.50. Price is approaching CD = 88.6% AB at $181. If BTC turns around, I believe NASDAQ:MSTR will turn around as well. ABC correction often enters the region of Wave 4 of one lesser degree, in this case, the price range from the top of Wave III ($200) to the bottom of Wave IV ($101). An ABC correction can go lower than Wave IV but in this case, since it's Wave , it needs to stay above Wave , which is $131.50. If CRYPTOCAP:BTC goes down to $78K area, I'm guessing it'll correspond to NASDAQ:MSTR going down to $145. Bulls seem to be defending $89K on BTC. I'm leaning towards $89K being the bottom for $BTC. I'll wait and see as I'm not selling my Bitcoin below $90K.
NASDAQ:MSTR
by HeadsUp2021
Strategy is sliding deeper inside its descending chanStrategy NASDAQ:MSTR is sliding deeper inside its descending channel, drifting toward a heavyweight support zone near 134–135. Price isn’t touching the channel bottom yet, but the structure is clearly guiding it toward that confluence level where major reactions tend to happen. This support has history. It’s been a battleground before, and it could become the line where momentum flips once again. If buyers step in as price approaches that zone, it could set the stage for a powerful reversal.
NASDAQ:MSTRShort
by ledgerdary
$MSTR - Some Temporary Bottom PossibleNot a bad place to pick up some MSTR if you've been looking to purchase shares. Overall, it remains a high-volatility, high-convexity speculative play tied directly to Bitcoin’s trajectory. Disclaimer: I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on here, expressed or implied herein, are committed at your own risk, financial or otherwise. Feel free to give us a follow and shoot us a like for more analysis updates
NASDAQ:MSTRLong
by MannyLo
Inflation & CPI Trends Across Major Economies1. What Inflation and CPI Represent Inflation represents the rate at which the general level of prices increases over time. It shows how much the purchasing power of money declines—meaning the same amount of money buys fewer goods and services. The Consumer Price Index (CPI) is one of the most widely used indicators to measure inflation. CPI tracks the price changes of a "basket" of essential goods and services such as food, housing, healthcare, education, transportation, energy, and other everyday items. Most central banks aim to keep inflation around 2%, believing this level balances economic growth and price stability. Too little inflation risks deflation, while too much inflation destroys purchasing power and can destabilize an economy. 2. United States – Inflation Led by Services and Wages The U.S. has experienced significant inflationary fluctuations in recent years. After rising sharply due to pandemic-related supply disruptions, labor shortages, and aggressive fiscal stimulus, inflation began to cool. However, the U.S. economy also faced persistent services inflation, driven by rising wages, rent growth, and strong consumer spending. The Federal Reserve uses the CPI and its preferred measure, the PCE index, to assess inflation pressure. To control inflation, the Fed raised interest rates aggressively. Cooling inflation in the U.S. is heavily influenced by: Stabilization of supply chains Declines in energy prices Slower wage growth Softening consumer demand Still, services and housing costs often remain elevated, making full normalization slower. The U.S. inflation trend has major global implications because of the dollar’s role in global trade and finance. 3. Eurozone – Energy Prices and Weak Growth Dynamics Inflation in the Eurozone has been heavily affected by energy price shocks, particularly due to geopolitical tensions and disruption of natural gas supply. When energy prices surged, CPI reached decades-high levels. As energy prices normalized, inflation cooled significantly. However, inflation dynamics in Europe differ from the U.S. because of: Weak GDP growth Higher dependence on imported energy Slower wage gains Fragmented labor markets across member countries While headline inflation eased, core inflation—which excludes volatile items like food and energy—sometimes remained elevated. The European Central Bank (ECB) aims for a 2% target, but must balance inflation control with the region’s fragile economic growth, making policy decisions more challenging. 4. United Kingdom – Stubbornly High Inflation Pressures The UK experienced one of the highest inflation rates among developed economies due to a combination of factors: Brexit-induced supply chain disruptions Declines in labor supply High food and energy prices Strong services inflation The Bank of England faced a difficult environment: inflation stayed high even as economic growth weakened. Food inflation and rising rents were particularly sticky. Although inflation eventually began easing, services inflation and wage pressures remained key challenges. The UK’s unique mix of structural and cyclical inflation forces continues to make inflation management more difficult compared with the U.S. or Eurozone. 5. Japan – Moving From Deflation to Inflation Japan historically struggled with deflationary pressures for decades. However, global supply chain disruptions, higher import prices, and a weaker yen pushed Japan’s inflation upward more recently. Japanese inflation trends differ from the West: Price rises are often driven by cost-push rather than demand-pull factors Wage growth tends to be modest Consumer behavior is highly price-sensitive Firms are reluctant to raise prices The Bank of Japan maintained ultra-loose monetary policy longer than other central banks due to its long deflation history. Inflation rising closer to the BOJ’s target was seen as a structural shift, but sustainability remains uncertain. Japan’s inflation is typically lower and more fragile than Western economies. 6. China – Low Inflation and Risk of Deflation Unlike the West, China’s inflation trends have been very subdued. Several factors contribute to China’s low CPI: Weak domestic demand Property market slowdown Falling producer prices Slow wages growth Consumers increasing savings rather than spending At times, China even faces deflationary pressures, especially in the manufacturing sector. China’s CPI is heavily influenced by food prices, particularly pork, which can cause short-term volatility but not persistent inflation. The People’s Bank of China typically uses supportive monetary policy, contrasting sharply with the tightening cycles in Western countries. China’s low inflation is a sign of economic softness rather than stability, impacting global trade demand and commodity markets. 7. India – Balancing Growth and Inflation India's inflation trends often revolve around food, fuel, and commodity prices, which make CPI more volatile compared with advanced economies. Seasonal factors, monsoon quality, and global oil prices heavily influence inflation in India. Food inflation—especially vegetables, cereals, and pulses—plays a significant role. The Reserve Bank of India targets a 4% inflation midpoint. Despite fluctuations, India often manages inflation reasonably due to: Strong supply-side interventions Government food subsidies A diversified economy A growing services sector However, persistent food shocks and high global oil prices can challenge India’s inflation stability. 8. Emerging Markets – More Volatility, Higher CPI Pressures Emerging markets such as Brazil, Turkey, South Africa, and Indonesia often face higher and more volatile inflation due to: Exchange rate fluctuations High dependence on imported fuel and food Political instability Limited monetary policy credibility Lower household income buffers Turkey has experienced hyperinflation-like conditions at times due to unorthodox monetary policy, while Brazil and others use very high interest rates to stabilize inflation. Inflation management in emerging markets is fundamentally more complex, with structural challenges and external shocks playing a larger role. 9. Global Trends – What Unites and What Differentiates Several global inflation themes have emerged: Common Factors Across Economies Supply chain disruptions Energy and commodity price volatility Labor market shifts Climate-related food supply issues Geopolitical tensions Key Differences Advanced economies face wage-driven services inflation. China and Japan face weak demand and deflation risks. Emerging markets face currency-driven inflation shocks. Central banks globally aim for price stability but must balance inflation control with economic growth. Fiscal policies, demographics, globalization trends, and technological innovation also shape long-term inflation trajectories. Conclusion Inflation and CPI trends across major economies are shaped by a mix of global and domestic forces. While the U.S. and Europe focus on cooling services inflation, Japan and China deal with the opposite challenge: ensuring demand is strong enough to prevent deflation. Emerging markets juggle inflation volatility due to external shocks. Understanding these regional differences is essential for investors, businesses, and policymakers to navigate an interconnected global economic landscape.
NASDAQ:MSTREducation
by GlobalWolfStreet
Full Reset before Full SendWhy March 2025 Could See New Highs What's Happening Right Now? Everyone is freaking out right now, but this is actually creating one of the best buying opportunities we've seen. Bitcoin is trading around $95,600 after dropping about 24% from its peak of $126,000 in October. The Fear & Greed Index is at 10 (Extreme Fear) – and you know what they say? Be greedy when others are fearful. But, also, be patient and set limits. The thing is, most people don't understand the economics behind Bitcoin or how liquidity actually works in crypto markets. We're playing a completely different game than stocks here. The Real Cost to Mine Bitcoin (And Why It Matters) Here's where it gets interesting. The big mining operations are producing Bitcoin for around $26,000-$28,000 per coin, while less efficient miners saw costs spike to $114,842 in October 2025... That's a massive range, and it tells you everything about where the floor is. After the April 2024 halving, it now takes 854,400 kilowatt-hours to mine just one Bitcoin – that's about 81 years of electricity for an average home, just for one coin. That's a fun fact. No smart miner is going to sell at a loss when they're paying that much for electricity and equipment (GPUs, etc). They'll just hold and wait. This creates natural supply constraints. The Liquidity Trap Right now, the market is in what I call a liquidity trap. As Bitcoin crashed from $126K down to where we are now, all the leveraged traders got wiped out. We saw $870 million in Bitcoin ETF outflows in a single day – that's both panic selling and intelligent, planned shorting, not fundamental weakness. Here's what most people are missing: if Bitcoin drops to around $75K, it's going to unlock massive amounts of liquidity – I'm talking hundreds of millions, possibly billions of dollars that's currently locked up in long positions (Futures). When those long get liquidated, the shorts will likely reverse their positions, that money floods back into the market and creates a supply shock. Basic economics: limited supply + sudden demand increase = price explosion. Price Targets & When to Buy I think we'll see $89K very soon – possibly this week between Monday and Wednesday (November 17-19, 2025). But here's my recommended strategy instead of trying to catch the exact bottom: First Buy: $89K Put in about 30% of what you're planning to invest. This is still a good entry even though it's not the absolute bottom. Second Buy: $80K Another 35% here. This is where things get really interesting from a risk/reward perspective. Third Buy: $75K The final 35%. This is the sweet spot where all that trapped liquidity gets released. Remember, demand increases as the price drops, and miners won't sell below cost. That's your supply shock waiting to happen. What About MicroStrategy? MSTR has crashed about 40% and is now trading at only 1.06 times its Bitcoin holdings, down from 2.7 times. The stock is around $200-$237 now, way down from its November 2024 high of $543. My prediction: MSTR will probably hit the $140-$150 range, maybe even drop to $100-$120 (which is where it found strong support from March to September 2024). If we do see those lower prices, I'm going all-in on MSTX shares, not MSTR – the 2x leverage structure is better. The Macro Picture Fed rate cut expectations dropped from 90% to about 40%, which is why everything's selling off. But this is temporary sentiment, not permanent damage. The infrastructure is still being built, institutions are still coming in, and the fundamentals haven't changed. Bottom Line Be patient. Wait for the dips. Bitcoin will likely hit $89K this week, and from there we could see further drops to $80K and $75K. Each level is a buying opportunity. By March 2025, I expect we'll be making new all-time highs. The key is understanding that crypto operates on different rules than stocks. Liquidity and supply dynamics matter more than anything else right now. Good luck, Terrapins
NASDAQ:MSTRLong
by Terrapins
Global Commodity Impact1. Commodities as the Foundation of Global Economic Activity Commodities are basic raw materials used to produce goods and services. The global economy depends on stable commodity supply because: Energy commodities (oil, gas, coal) power industries and transportation. Agricultural commodities feed the world’s population. Industrial metals (copper, aluminum, nickel) build infrastructure, technology, and machinery. Precious metals (gold, silver) act as safe-haven assets. When commodity markets fluctuate, it creates ripple effects across multiple sectors. 2. Impact on Global Inflation and Cost of Living One of the biggest impacts of commodities is their influence on global inflation. Energy-Driven Inflation Oil and natural gas are input costs for almost every industry—transport, manufacturing, electricity, fertilizers, and logistics. When oil prices rise sharply, transportation and manufacturing costs increase. This leads to cost-push inflation, causing higher prices for goods and services worldwide. Countries heavily dependent on imported oil (like India, Japan, and many EU nations) are especially vulnerable. Food Inflation Agricultural commodities like wheat, rice, corn, soybeans, and sugar directly affect consumer food prices. Extreme weather, wars, export bans, or supply shortages can spike global food inflation. Poorer nations are hit hardest because food makes up a large portion of household expenditure. 3. Impact on Global Trade and Economic Growth Commodity-exporting countries—such as Saudi Arabia (oil), Australia (iron ore), Brazil (soybeans), and Chile (copper)—depend on global commodity cycles. Commodity Booms When prices rise: Export revenues increase Budget deficits shrink Currency strengthens GDP growth accelerates For example, high oil prices boost the economies of Gulf countries. Commodity Crashes When prices fall: Export earnings drop Currencies weaken Government spending contracts Unemployment rises Many African and Latin American countries suffer during commodity downturns. Thus, commodities determine economic stability, especially in developing nations. 4. Geopolitical Power and Resource Control Commodities are tools of geopolitical influence. Energy as a Strategic Weapon Countries with abundant energy resources can leverage them for political power. Russia uses oil and gas exports to influence Europe. OPEC+ uses output decisions to control global oil supply. The U.S. uses its shale oil production to maintain energy dominance. Strategic Metals Critical minerals like lithium, cobalt, nickel, and rare earths are essential for: EV batteries Semiconductors Renewable energy equipment China controls a large share of global rare earth and battery mineral processing, giving it strategic leverage over technology supply chains. 5. Impact on Currency Markets Currencies of commodity-exporting nations move in line with commodity prices. Examples: Canadian Dollar (CAD) moves with oil. Australian Dollar (AUD) moves with iron ore and coal. Russian Ruble (RUB) strongly correlates with oil and gas prices. Brazilian Real (BRL) follows soybean and iron ore trends. When commodities rise, these currencies strengthen; when commodities fall, they weaken. 6. Impact on Stock Markets and Sector Performance Commodities influence the performance of entire stock market sectors. Energy Sector Oil rising benefits: Oil & gas producers LNG exporters Oilfield service companies But it hurts: Airlines Logistics companies Chemical manufacturers Metals and Mining Sector Higher metal prices boost: Mining companies Steel and aluminum producers Infrastructure-related sectors Agriculture Sector Higher food commodity prices benefit: Fertilizer manufacturers Agricultural machinery companies Seeds and agri-tech firms Thus, commodities directly shape corporate earnings. 7. Impact on Global Supply Chains Modern supply chains rely on stable commodity inputs. Supply Chain Disruptions Occur Due To: Political conflicts (Russia-Ukraine war affecting oil, gas, and wheat) Export bans (India’s wheat or rice bans impacting global food supply) Natural disasters (floods impacting sugarcane or wheat crops) Environmental restrictions (coal or mining regulations) These disruptions lead to shortages, delivery delays, and price spikes in global markets. 8. Impact on Developing Economies and Poverty Levels Poor and developing nations are disproportionately affected: High fuel prices increase transportation and electricity costs. Food inflation directly harms low-income households. Commodity import bills worsen trade deficits. For example, African countries struggle when fertilizer and wheat prices rise, pushing millions into poverty. 9. Impact on Industry Profitability Every industry depends on commodities either directly or indirectly. Industries Hurt by Rising Commodity Prices Airlines (fuel cost) Cement & steel manufacturers (coal and iron ore) Textile & chemical firms (crude oil derivatives) FMCG companies (palm oil, sugar, wheat) Industries Benefited Oil & gas companies Mining companies Agricultural producers Renewable energy sectors (long-term benefit from high fossil fuel prices) Commodity fluctuations thus shape global business cycles. 10. Impact on Investors and Financial Markets Commodities are used as: Hedging instruments against inflation Safe-haven assets (gold) Speculative opportunities (oil futures, metal contracts) Institutional investors often shift capital to commodities during periods of economic uncertainty. This can drive prices higher and create volatility. 11. Environmental and Climate Impact Climate change increasingly affects agricultural and energy commodities: Droughts reduce crop yields Floods damage plantations Heatwaves reduce livestock productivity Storms disrupt energy infrastructure At the same time, global shifts toward renewable energy are changing the demand for fossil fuels and increasing demand for metals like lithium, copper, and nickel used in clean technologies. 12. Long-Term Global Commodity Trends Energy Transition A shift from fossil fuels to renewable energy is underway. Oil demand may peak in coming decades. Metals required for EVs and batteries will see massive demand growth. Population Growth More people means higher demand for: Food commodities Water Energy Housing materials Technological Advancement Automation, AI, and agri-tech may improve efficiency and reduce commodity price volatility. Conclusion The global commodity impact is vast, multidimensional, and deeply interconnected with economics, geopolitics, trade, financial markets, climate, and national policies. Commodity price movements can spark inflation, shift geopolitical power, disrupt supply chains, enrich exporting nations, and destabilize vulnerable economies. In a world facing climate change, technological shifts, and geopolitical tensions, commodity markets will continue to shape the global economic landscape.
NASDAQ:MSTREducation
by GlobalWolfStreet
Final Leg of Epic Run - Blow off top reaching climaxMicrostrategy has exceeded all expectations, smashing past previous all time highs along with Bitcoin. As Bitcoin approaches 100k, now is a good time for bears to consider where they can short Microstrategy in the event of a pullback. I think this is setting up an opportunity for an epic short opportunity, not one that I will be immediately jumping into as I don't advocate shorting all time highs. However, if we reach my Fib extensions and if there is bearish divergences then this could be an epic drop. It looks like this is the final 5th wave of a larger 5th wave Supercycle, the blow off top is almost complete. I'm waiting for a change in market structure. The price range of $530 to $650 is where I see the drop starting, I will wait patiently for the short trade. I will also be paying close attention to the Bitcoin price action. Not financial advice, do what's best for you.
NASDAQ:MSTRShort
by NoFOMO_
24
MSTR Short Closed: Michael Burry vibesI started my NASDAQ:MSTR short last November during the retail yeet. I really took a dislike to Saylor telling people to mortgage all they could to buy Bitcoin and then later to buy stock in his company. The history of finance is littered with con men saying and doing such things. History doesn't repeat but it rhymes. Now the stock sits on a key Support; the March 2024 high and the prime Volume Profile level of the run up. Its time to unwind the position in profit and see what happens next. MSTR hitting a Support coincides with CRYPTO:BTCUSD also hitting a major Volume Profile Support. The Weekly Ichimoku chart remains bullish. A recovery pullback up could happen from here. Over the last year I've had to go through the cycle of being "right" and being "wrong" all the while being public in my position among Bitcoin Maxi friends. They enjoyed poking fun at me the whole way. Their arrogance and jabs did not change my mind, rather they gave me some confidence that I was properly contrarian. Hubris never pays off in investing. Every great trade I have made has begun (and lasted) in deep uncertainty. That is what it means to take risk. I still believe that the narrative of MSTR has yet to completely dissolve among the faithful but I have a habit of always taking profit "too early." Trade wisely. Stay convicted.
NASDAQ:MSTR
by norok
1
Strategy: Downward Pressure Intensifies Strategy has continued to develop downward pressure as anticipated since our last update, bringing it closer to the targeted low of the turquoise wave 2. Our alternative—and now grayed-out—Target Zone has been breached to the downside, allowing us to remove the alternative scenario of a premature breakout to the upside. Investors who speculated on this alternative and entered within the alternative Target Zone with a stop 1% below the lower edge have likely been stopped out by now. For now, we are still allowing some room for turquoise wave 2 to move lower; however, it should find its bottom above the support at $102.40 to set the stage for wave 3 to advance further above the resistance at $674.18.
NASDAQ:MSTRShort
by MarketIntel
1
Forward and Future Forex Trading1. Understanding Forex Derivatives A derivative is a financial contract whose value is derived from the performance of an underlying asset—in this case, a currency pair. In forex trading, derivatives such as forwards, futures, options, and swaps are used to hedge currency risks or to speculate on currency price movements. The purpose is to manage exchange rate volatility that can impact trade, investment returns, or the cost of imported and exported goods. 2. What is a Forward Forex Contract? A forward contract in forex is a customized agreement between two parties to exchange a specific amount of one currency for another at a predetermined rate (known as the forward rate) on a specified future date. For example, suppose an Indian importer expects to pay $1 million to a U.S. supplier in three months. If the current USD/INR rate is ₹83, and the importer fears that the rupee may depreciate to ₹85, they can enter into a forward contract with a bank to buy $1 million at ₹83.50 after three months. Regardless of the market rate at that time, the importer will pay ₹83.50 per dollar, thus avoiding potential losses from exchange rate volatility. Key Characteristics of Forward Contracts: Customization: The contract size, maturity date, and exchange rate are negotiated between the buyer and seller. No Exchange Trading: Forwards are traded over-the-counter (OTC), typically between banks, corporations, or financial institutions. Settlement: The exchange of currencies occurs on the agreed future date. No Initial Margin: Usually, no upfront margin is required; settlement happens only at maturity. 3. What is a Forex Futures Contract? A forex futures contract is a standardized agreement to buy or sell a specific amount of currency at a future date and a predetermined rate. Unlike forwards, futures are traded on regulated exchanges such as the Chicago Mercantile Exchange (CME) or Intercontinental Exchange (ICE). For instance, a trader may buy a Euro FX Futures contract to purchase euros and sell U.S. dollars at a fixed exchange rate three months from now. These contracts are marked to market daily, meaning profits and losses are settled at the end of each trading day. Key Characteristics of Futures Contracts: Standardization: Futures have fixed contract sizes, maturity dates, and settlement procedures. Exchange-Traded: Traded on organized exchanges under regulatory supervision. Daily Settlement: Open positions are marked to market daily, and margin adjustments are made accordingly. Margins and Clearing Houses: Traders deposit an initial margin and maintain a variation margin to cover potential losses. Clearing houses guarantee the trade, reducing counterparty risk. 4. Forward vs. Future Forex Contracts – Key Differences Feature Forward Contract Futures Contract Trading Venue Over-the-counter (OTC) Organized exchanges (e.g., CME) Customization Fully customizable Standardized Counterparty Risk Higher (no clearing house) Lower (clearing house guarantees) Liquidity Lower Higher Margin Requirement Usually none Required (initial and variation) Settlement At maturity Daily mark-to-market Flexibility High Limited due to standardization Use Case Hedging by corporations Speculation and hedging by traders In essence, forwards are tailored instruments suited for businesses with specific needs, while futures cater more to traders and investors who prefer liquidity, transparency, and regulatory oversight. 5. Purpose and Applications A. Hedging Corporations use forwards and futures to hedge foreign exchange exposure from imports, exports, loans, or investments. Example: An Indian IT firm expecting USD inflows may sell dollars forward to lock in the current exchange rate and protect against rupee appreciation. B. Speculation Traders and investors use futures to profit from expected currency movements. Example: A trader expecting the euro to strengthen may buy euro futures contracts. C. Arbitrage Arbitrageurs exploit differences in currency prices between spot, forward, and futures markets to earn risk-free profits. Example: Covered interest arbitrage ensures alignment between interest rates and forward premiums. D. Portfolio Diversification Forex futures allow institutional investors to gain exposure to foreign currencies, balancing risk in their investment portfolios. 6. Advantages of Forward and Future Forex Contracts Forwards: Tailored contracts that meet exact needs. Useful for long-term hedging. No upfront margin or daily cash flow requirement. Futures: Highly liquid and easily tradable. Reduced counterparty risk due to clearing houses. Transparent pricing and regulated environment. Ideal for short-term trading or speculation. 7. Disadvantages and Risks Forwards: High counterparty risk. Illiquid—difficult to exit before maturity. No daily marking to market; losses can accumulate unnoticed. Futures: Less flexibility due to standardization. Requires margin deposits, tying up capital. Daily settlement can create cash flow challenges. Speculative positions can amplify losses. 8. Market Participants The key participants in forward and future forex trading include: Commercial Banks – act as counterparties in forward contracts. Corporations – hedge foreign exchange risk. Hedge Funds & Institutional Investors – speculate using futures. Central Banks – use forwards/futures for currency stabilization. Retail Traders – participate in exchange-traded futures for short-term gains. 9. Real-World Examples Forward Example: A Japanese exporter expecting $5 million from a U.S. buyer in six months locks in the JPY/USD forward rate to avoid yen appreciation losses. Futures Example: A currency trader on CME buys British Pound futures anticipating a rise in GBP against USD. If GBP strengthens, the trader profits as the futures contract gains value. 10. Global Forex Forward and Futures Markets The forward market is vast, largely dominated by interbank transactions. According to the Bank for International Settlements (BIS), forwards account for over $1 trillion in daily turnover globally. The futures market, while smaller, is growing rapidly due to transparency and accessibility. Leading exchanges like CME, Euronext, and SGX offer a wide range of currency futures, including EUR/USD, GBP/USD, USD/JPY, and emerging market pairs such as USD/INR. Conclusion Both forward and future forex trading play critical roles in the international financial system. Forwards provide flexibility and customization, making them ideal for corporations seeking to hedge long-term currency risks. Futures, on the other hand, offer liquidity, transparency, and regulatory safety, making them attractive for traders and investors. In today’s volatile global economy, where exchange rates can fluctuate due to geopolitical tensions, monetary policies, or economic shocks, these instruments are indispensable tools for managing currency exposure and optimizing financial strategies. The choice between forwards and futures ultimately depends on the trader’s objectives, risk appetite, and the nature of their exposure. Together, they ensure that global trade and investment can proceed with reduced uncertainty and enhanced financial stability.
NASDAQ:MSTREducation
by GlobalWolfStreet
MSTR Trading Close To Support Based on Elliott wave and CyclesMicroStrategy has seen a strong uptrend since the December 2022 lows, but over the last year the market has been in a retracement phase. It appears that this could be another A-B-C setback within a higher-degree wave four, where subwave C could potentially retest the 200 area, or even extend toward the deeper 132 support. That level also aligns with the February 2021 high, making it an important zone to watch. Cycle-wise, it looks like we’re currently in the middle of a full cycle, suggesting that the correction could be moving into second half of this retracement, and may come to an end within the next few months. Ideally, we could then see a new turn higher in 2026, continuing the broader bullish trend. Highlights: Trend: Corrective pullback in wave four Support: 200 / 132 Cycle View: Mid-cylce; possible new rebound early 2026 Note: Structure fits within a broader five-wave bullish sequence, with strong long-term trend intact GH
NASDAQ:MSTR
by ew-forecast
$MSTR bounce above $300 before falling further?Ever since Early October, MSTR has been falling. We've now reached the bottom of a flag structure and I'd expect a bounce here before we fall further. I think the most likely path from here is that we see a rally into the $300 zone, however, it's possible that we can go up to the top of the flag before falling further. That said, if we get a rally, it'll be a rally you want to sell because eventually I think we're heading down to the $100 level before you want to become a long term buyer. I've marked off key resistances on the path up to take profits on a long, should the rally play out from here.
NASDAQ:MSTR
by benjihyam
Microstrategy is who Satoshi warned us about. MSTR has broken below the 50 day moving average and is now at 52 weeks low. All while they hold the most bitcoin they ever have, now at 641,000 BTC. Some would even say they are trying to corner the market, using debt - while they claim they will never sell, but also they are not even earning any yield on their holdings. They will owe over $600 million in dividend payments next year. You simply can not create value out of thin air. NASDAQ:MSTR
NASDAQ:MSTRShort
by KennedyResearch
1