Forex has the potential to be a lucrative side hustle or even career for those willing to invest time and effort into getting started. However, it also comes with a bit of a learning curve for newcomers, as you must learn to navigate different financial markets, investment types, and more.
One of the most confusing parts of getting started in Forex is the terminology. A term like US30 may not mean much to you as a newcomer, but here is your guide that will make everything clear.
What Is US30?
US30 Forex is another way of labeling the Dow Jones Industrial Average. The Dow Jones Industrial Average is a stock market index that looks at the performance of 30 large companies (hence the other name, the Dow Jones 30), including 3M, Apple, and American Express. These companies are blue chip stocks, which means they are companies that are safe, lucrative investments no matter what because they have a strong financial history.
The Dow Jones Industrial Average is important because it helps give a snapshot of how the US stock market is doing as a whole. However, the Dow Jones is a bit more volatile than other indexes, such as the S&P 500, because it is dependent on the performance of just 30 companies.
Why Is US30 Relevant in Forex?
You may be wondering why it is important to track a particular stock index in Forex, which is all about foreign currencies. However, looking just at currencies is a very simplistic way of operating in Forex. Many Forex traders also trade in important national stock indexes such as the US30 because they see it as just another way of comparing the relative financial health of different countries.
Even if you don’t want to invest directly in the US30, it is a useful metric to follow as a Forex trader because it gives you insight into how well American markets are performing. It may take a while to get a feel for the relationship between the US30 and actual currencies, but it is a very valuable tool.