Oil and Gold Prices - Did you know that currency traders use commodities prices to trade the Forex market? For example, the Swiss Franc correlates highly to the price of gold, and the Canadian dollar often mirrors moves in the price of oil.

Interest Rate Arbitrage - Institutions and hedge funds have used this technique for years, and now you can too. 'Carry trades' involve buying the high-yielding currency of a country with a strengthening economy, and simultaneously selling the low-yielding currency of a country with a weakening economic outlook. Traders earn the difference in interest between the two currencies, in addition to potential capital appreciation.

Option Volatility - Volatility runs in cycles, and Forex traders can take advantage of this by monitoring option volatility. When option volatilities shrink, the probability of a breakout increases, often leading to explosive moves. Extreme volatility measurements can be used as a contrarian indicator.

The COT Report - Forex traders can take advantage of detailed information, published weekly by the U.S. government, which reveals the positions of major market players. The Commitment of Traders report details the size of currency futures positions and reveals shifts in sentiment and momentum in the Forex market.

Use TIC Data - The Treasury International Capital (TIC) reporting system monitors foreign buying and selling of U.S. assets on a monthly basis. TIC data reveals cross-border transactions involving U.S. securities, giving insight into capital flows that can move Forex exchange rates.

Central Banks Can Help - Occasionally, central banks intervene in the Forex market to strengthen or weaken their respective currencies, but did you know that these institutions often make their intentions known well in advance? Smart traders can profit from this information, if they know how to recognize it.

Trade News and Events - Because the Forex market is open 24 hours a day, traders can take advantage of news releases that occur around the clock. Any major news story with international implications can affect currency exchange rates, and economic releases often lead to big swings in the market.