Using Market Correlation as a Decent Parameter for Choosing Lot Sizes
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Market correlation is the statistical measure of the relationship between two securities. The correlation coefficient ranges between -1 and +1. A correlation of +1 implies that the two currency pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.
When trading multiple pairs, it is always recommended to check the correlation between currencies to prevent wrong analysis of the market movement.
To learn more, please check the video.
Get Your Free Membership Now!
Market correlation is the statistical measure of the relationship between two securities. The correlation coefficient ranges between -1 and +1. A correlation of +1 implies that the two currency pairs will move in the same direction 100% of the time. A correlation of -1 implies the two currency pairs will move in the opposite direction 100% of the time. A correlation of zero implies that the relationship between the currency pairs is completely random.
When trading multiple pairs, it is always recommended to check the correlation between currencies to prevent wrong analysis of the market movement.
To learn more, please check the video.
