The fact that a number of trading instruments correlate among themselves has long been known. This phenomenon is used on a variety of exchanges, in many all sorts of options. It remains unchanged that traders are looking for such trading instruments that would demonstrate similarities in behavior. In this case, the speculator works with a group of currency pairs, studying their joint behavior in the market. This method of trading is not simple and is not an option for beginners. In fact, there are quite a lot of material in this type of trade. The case is complicated by the fact that over time, the degree of correlation, the so -called correlation coefficient changes.
The whole idea is, there are currency pairs that behave in a very similar way over time. Sometimes there is such a pattern that after moving on one side of the tool, the second repeats its movement after a while. The delay can be different, but it is enough, as a rule, so that the trader reacts and open a position on the second currency pair, where the movement should begin. Of course, the laws of this kind are not stable. Periodically, the correlation coefficient between trading instruments is changing. In this case, you have to look for new options.
On Forex there is such a thing as arbitration. When using such a trading methodology, accounts of various brokerage companies are used. Suppliers of quotations should be different. This is easily checked by the opening of both accounts and observing the price on the same currency pair in two different companies. Can only be used in that case, if there is a discrepancy in the values of the price of the same tool. The price fluctuates all the time and in different terminals can diverge from each other at certain distances. Just the use of such a feature is currency arbitration. It is enough for the trader to find such a currency pair that would significantly disperse in the meanings.
In a sense, hedging is ensured in trade through the use of not one, but several currency pairs. In this case, trade as a whole will most likely become more balanced and reliable. Traiders use hedging to reduce risk in work, which is one of the indicators of the professionalism of the speculator. Such protection can be provided in many ways, for example, when trading simultaneously on different exchanges, on correlating instruments and so on. A very reasonable act from the trader is to increase the stability and stability of his account. Positions on various tools partially overlapping each other can be in the market open for a long time. Moreover, due to the fact that accounts without swap have appeared, a person may not worry about the commissions withdrawn during the long -term retention of the transaction.
Swap is just a fee for transferring a position through the night. Когда сделок мало, или они длятся всего пару дней, изымание комиссии не столь существенно, но если трейдер в своей торговле хеджируется и держит сделки открытыми долгое время, например, месяц, то своп может существенный урон нанести балансу. At the moment, many brokers are already offering deposits without SWAP. Such options found their fans among speculators who are not involved in daytime trade. When trading using a correlation, it is also advisable to choose accounts without accruing swap.