Forex Spread Betting: Compare Different Markets
Financial Spread Betting
Check out our latest tips for financial spread betting and learn exactly how we trade.
Forex Trading System
Learn all about forex trading with LS Trader and check out the markets that we trade.
Online Trading Strategies
Study the latest online trading strategies that we use to make substantial profits each year.
Stock Market Trading
Visit our market trading section that teach you about trading financial markets.
Fast, Easy & Proven Financial Spread Betting System
Sign up and take advantage of our proven financial spread betting system and information service. We aim for triple digit gains* each year and offer a 100% no quibble refund on your 1st months subscription. Our results speak for themselves.
Forex markets are important as they allow countries to trade. Forex lets countries use their currency and exchange it for another. Currency transaction is the purchase of a one currency for another.
There are eight major currencies from countries across the globe. These include the EUR, GBP, AUD, USD, NZD, CHF, CAD, and JPY. This results in 24 possible trading currency pairs for traders.
When trading currency pairs, one currency will be the base currency. The other currency in the pair is the counter or offer currency. The pairs are shown using a three letter symbol separated by a slash.
Forex markets are affected by many other stock market prices. The price of oil can cause the Canadian currency to strengthen. The Australian dollar weakens when commodity prices decline.
When trading a currency, one is trading a derivative of another. For example, a trader is trading the GBP/YEN with a trading firm. The underlying derivative being traded is the GBP/USD and USD/JPY.
Currency pairs may move in correlation to each other in the market. Currencies may move in the same direction or opposite direction. The correlated pairs that move in opposite directions are listed here.
These pairs include the AUD/USD and USD/JPY and AUD/USD and USD/CAD. Other currencies are EUR/USD and USD/CHF, and GBP/USD and USD/CHF. The last currencies which move opposite are GBP/USD and USD/JPY.
The pairs that move together in the same direction are here. They are EUR/USD and NZD/USD, AUD/USD and GBP/USD, USD/CHF and USD/JPY. The last currency pair that moves the same is USD/EUR and GBP/USD.
In the financial world, a correlation is a statistical measure. It is the measure of the relationship between two instruments. Here one is talking about currency so correlation is about currency.
The correlation coefficient is expressed between a -1 and a +1. A +1 tells pairs will move in the same direction with a 100% accuracy. A -1 is a zero correlation meaning the relationship is random.
Correlations hardly ever stay the same or near the same on currencies. Two pairs have a strong correlation could have a negative correlation. This negative correlation could be six months down the road.
Correlations of currency pairs change due to a variety of factors. Monetary policies and commodity prices are two reasons these change. When comparing forex, it is best to look at the past six month's.
Share and Enjoy :
Sign Up With Us Today
Sign up with our system that aims to make 160%* per year & take advantage of our proven spread betting system.
Comments & Ratings
Copyright 2011 © LS Trader. The LS Trader Group, New Bond House, 124 New Bond Street, London, W1S 1DX, UK
Financial Spread Betting & Online Forex Trading System
* Results are the outcome of backtesting and are hypothetical since not all trades were taken. Future results may be higher or lower than past results.
