oussama94
05-28-2017, 18:33
Everything in the currency market is interrelated to some extent, and
knowing the direction and strength of the relationships between different
currency pairs can be an added advantage for all traders. When trading in
the ** market, one of the most important facts to remember in creating
a strategy is that no currency pair is isolated. Knowing how closely correlated
the currency pairs are in your portfolio is a great way to measure
exposure and risk. Many traders may find themselves thinking that they are
diversifying their portfolio by investing in different currency pairs, but few
realize that many pairs actually have a tendency to move in the same direction
or opposite to each other historically. The correlations between pairs
can be strong or weak and last for weeks, months, or even years, which
makes learning how to use and calculate correlation extremely important.
New correlations have been added for this edition
knowing the direction and strength of the relationships between different
currency pairs can be an added advantage for all traders. When trading in
the ** market, one of the most important facts to remember in creating
a strategy is that no currency pair is isolated. Knowing how closely correlated
the currency pairs are in your portfolio is a great way to measure
exposure and risk. Many traders may find themselves thinking that they are
diversifying their portfolio by investing in different currency pairs, but few
realize that many pairs actually have a tendency to move in the same direction
or opposite to each other historically. The correlations between pairs
can be strong or weak and last for weeks, months, or even years, which
makes learning how to use and calculate correlation extremely important.
New correlations have been added for this edition