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Michele Tue Jul 02 2024 | 6 answers 1738

What is the difference between ATR and ADR?

Could you elaborate on the key distinctions between Average True Range (ATR) and Average Daily Range (ADR) in the context of <a href="https://www.btcc.com/en-US" title="cryptocurrency">cryptocurrency</a> trading and finance? ATR is often used as a volatility indicator, measuring the average range of prices over a given period. However, ADR focuses more on capturing the daily high-low range, potentially offering a more granular view of price fluctuations. How do traders typically utilize these metrics in their strategies? Are there any specific scenarios where one might be preferred over the other? Understanding these nuances could be crucial for making informed decisions in the volatile world of cryptocurrencies.

Carlo Mon Jul 01 2024 | 7 answers 1611

Why buy ADR instead of stock?

In the realm of finance and investing, a common question that arises is: "Why buy American Depositary Receipts (ADRs) instead of direct stocks?" The question highlights the dilemma investors often face when considering exposure to international markets. ADRs provide a convenient way for investors in one country to invest in stocks of companies listed in another country. However, the key considerations include cost, convenience, liquidity, and currency risk. While direct stocks may offer more direct ownership and potential voting rights, ADRs offer a simplified and often more liquid alternative. Additionally, currency fluctuations can have a significant impact on returns, making ADRs an attractive choice for investors seeking to hedge currency risk. So, why choose ADRs? It often boils down to a combination of factors tailored to each investor's specific needs and objectives.