Hello Everyone!
What is the best benchmark to use if my asset class is forex?
Hi,
As such the best benchmark is hard to suggest from an objective point of view. It can depend on a variety of factors, including your trading style, geography, and even whether it is long-term or short term.
As a starting point, you can consider the US Dollar Index (DXY).
Further, you can also look at the treasury bills, or the inter-bank market rates. You can also look at LIBOR (London Interbank Offer Rate).
Further, some suggest the Bloomberg Dollar Spot Index as well.
As such, you can look at various benchmark and carefully research which benchmark should be used depending on your trading strategy.
Hope this helps.