Can you buy the US dollar index?

Trading the U.S. Dollar Index (DXY) involves establishing a relationship with a derivatives provider or futures broker. This is necessary as the DXY, similar to other indices, lacks a tangible underlying market where direct buying and selling can occur.

Instead, traders seeking exposure to the value of the U.S. dollar relative to a basket of other major currencies must rely on derivative products. These financial instruments allow investors to speculate on the future movements of the index without owning the underlying assets.

Derivatives such as futures contracts are popular choices for trading the DXY. These contracts obligate the buyer to purchase and the seller to deliver a specified amount of the index's value at a predetermined future date and price.

By trading DXY futures, investors can capitalize on their expectations of the dollar's strength or weakness against other currencies. The flexibility offered by derivatives trading also enables investors to hedge against currency risks in their portfolios.

BTCC, a prominent cryptocurrency exchange, offers a diverse range of services that extend beyond digital asset trading. Among its offerings are facilities for trading derivatives, including those related to traditional financial markets like the DXY.