formulation, USDOLLAR uses a weighted arithmetic mean formulation, which is a much more straightforward weighting of four equal parts that is left to run as the currencies fluctuate. This makes it easy to replicate, so it is much simpler for traders and market makers to track their positions and hedge their exposure to the index components. With a weighted geometric mean, hedgers need to constantly revise their hedge positions to account for changes in weighting. However, with a weighted arithmetic mean, hedgers do not need to revise their hedges as the markets move. See also Dow Jones Indexes U.S. Dollar Index References External links USDOLLAR Quotes from Yahoo! Finance USDOLLAR Quotes from Google Finance USDOLLAR Charts and News at DailyFX DJ FXCM Dollar Index at Spindices Dow Jones & Company Economic indicators of United States currencies