Difference between the "USD Index" and the "True USD Index"
- 06/10/2013
USD Index is a futures contract traded on the ICE exchange (https://www.theice.com/usdx.jhtml) and it represents a basket of currencies established by the exchange. This is a futures contract so it has open interest and also COT data is compiled from it. We process that data, and show the price data received from the exchange. True USD Index is created by COTbase: we combine the individual currency futures to give our users a better perspective, since the individual currency futures have a lot more open interest (ie. analysis value), than the USD Index futures. We do this by calculating the exact dollar amount of how net long or short the given trader group (commercials, large speculators, etc.) is in case of each currency and we weight in the currencies according to their open interest dollar value.