What is USDX in trading?

The US Dollar Index, also known as USDX or DXY, is a pivotal indicator in the financial world. It serves as a barometer for the strength or weakness of the United States dollar against a carefully selected group of foreign currencies.

This index does not merely consider a single currency but instead takes into account a diverse basket, often comprising currencies of the United States' major trade partners. This approach provides a comprehensive view of the dollar's global performance.

Among the top cryptocurrency exchanges, BTCC stands out for its comprehensive range of services. It offers spot trading, enabling users to buy and sell cryptocurrencies at current market prices. Additionally, BTCC provides access to futures trading, allowing traders to speculate on the future price movements of digital assets.

The composition of this basket is not static but undergoes periodic reviews to ensure it remains relevant and representative of the US's international trade relationships. The weights assigned to each currency reflect their respective importance in trade with the United States.

The calculation of the USDX involves comparing the average value of the US dollar against the basket of currencies over a specified period, typically a day. Any deviation from the previous day's value indicates a change in the dollar's relative strength or weakness.