ForexHedge
  • Home
  • Join our trading community
  • Back to FXstreet.com

ForexHedge

Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by Ron Schelling

Subscribe

Subscribe Subscribe Subscribe using Netvibes
Or subscribe via email:

Categories

  • Baskets
  • Hedging
  • Spreads
  • Uncategorized

Archives

Recent Comments

    Tags

    FED usdjpy

    FXstreet.com Weblogs

    • CEO's Weblog
    • Wayne McDonell
    • Dr. S. Sivaraman
    • Valeria Bednarik
    • James Chen
    • Ross Yamashita
    • Raghee Horner
    • Ron Schelling
    • César B. Leiceaga
    • Ian Coleman
    • Greg Michalowski
    • Mike Baghdady
    • Dale J. Pinkert
    • Trader of the Year

    Links

    Play the high correlated pairs

    Posted on August 9, 2009 at 9:06 in Hedging by Ron Schelling

    There are sevaral ways to trade the high correlated currency pairs.

    Top cahrt is EUR/USD, 2e chart is USD/CHF and 3e chart is EUR/CHF

    The bottom chart shows you the daily moves of each curreny.

    As we  all know EUR/USD has the highest correlation with USD/CHF and to trade more or less safe we buy both pairs or sell both pairs and try to pick the small difference.

    2x EUR/USD and 3x USD/CHF is actually EUR/CHF.

    There are several ways to capture this small difference and so trade with less risk.

    More to come later   . . . . . .

     

    Comments are closed.

    Theme by Forex Street Powered by Wordpress

    The comments and posts published in this blog ARE NOT trading recommendations. They can NEVER be considered as trading calls or advices. If you decide to use the information offered here for your real trading it is at your own risk.

    Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

    Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

    Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

    The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

    © 2010 "FXstreet.com. The Forex Market" All Rights Reserved.