Correlation and Exposure
Understand how position size, stops, risk/reward and account exposure affect outcomes.
Correlation and Exposure
Several positions may share currencies, sectors or market drivers. Correlations can change during stress, and net exposure may hide gross position size. Evaluate combined risk rather than treating every trade as independent.
Example
Long EUR/USD and long GBP/USD both involve short-dollar exposure.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.