To be an effective trader, understanding your overall portfolio's sensitivity to market volatility is important. But this is particularly so when trading forex. Because currencies are priced in pairs, no single pair trades completely independently of the others. Once you know about these correlations and how they change, you can take advantage of them to control over your portfolio's exposure.
Source: http://www.investopedia.com/articles/forex/05/051905.asp
Was this Tip useful?
This content can be found on the following page:
Get our content on your iGoogle page
RSS