18 November 2009

Euro and Swiss franc

If you are interested in online Forex trading currency, you need to know about a ratio of exchange before you start. This relationship between the euro and Swiss franc, which outlined the correlation is too high to ignore.The negative correlation between this pair can reach 95%. This phenomenon is called the opposite ratio. This means that when the price of EUR / USD is improving, USD / CHF sold many times, and vice versa. If you manage two financial instruments, 95% correlation - this is your chance to get closer to perfection.

Thus, we get two close positions offset doubles profit in the same position, although it seems that committing two separate transactions. It is very important to understand in order to properly manage risk, because if something goes wrong, you may incur significant losses.

However, you can significantly increase your chances of winning if you're bidding on the basis of daily charts, as the correlation weaker on the charts of shorter periods.

Correlation in the pair USD / CHF weakens considerably in the second half of the session, the United States, when European traders leave the market.


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