IC Markets
3:09
2:39
2:10
2:18
3:43
8:42
Currency Pair Correlation
3:06 · 8 chapters · Forex lessons, part 69
What you'll learn
Three open trades can be one bet in disguise. Here's how currency correlation hides risk, and how to size for it.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What currency pair correlation means
- Key point 2
- Which pairs tend to move together, and which often move opposite
- Key point 3
- Why two correlated 1% trades can act like one 2% trade
- Key point 4
- Why correlation shifts and how to check it
- Key point 5
- How to size trades that would lose for the same reason
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.