Forex Hedging
The Correlation Code is a foreign exchange trading package that comprises a course and a dedicated software tool which enables you to trade forex in a revolutionary new way.
It’s all about correlation and synthetic currency pairs. And, used correctly, it can be a great forex hedging tool.
We all know about currency pairs. Forex trading is based on them. You always buy one currency and sell another at the same time. You make money when the prices of two currencies change. Some common currency pairs are the EUR/USD, GBP/USD, USD/CHF, etc.
What the Correlation Code shows is how to take advantage of the relationship of currency pairs. For example, the charts show that the GBP/USD and the EUR/USD tend to move in the same direction most of the time, albeit they don’t move in exactly the same margin. These differences in margins can be used to make profits.
The way the Forex Correlation Code does this is to exploit the correlation between various currency pairs and to create synthetic pairs and trade them. A synthetic pair is an amalgamation of two pairs combined. For example, you can trade the GBP/USD versus the EUR/USD.
In the software package of the Correlation Code, you do this with a single trade. You trade a synthetic pair but actually the software designs two ordinary trades, one for each currency pair. This enables you to profit from the difference in the movements of the two currency pairs.
You’re using the fact that they have correlation but you’re making money when they diverge.
There are great advantages in this trading technique:
- You can exploit the volatility of a synthetic pair and get many more trading opportunities.
- The trends are more well-defined and easier to recognize.
- There are huge jumps so you can see moves of 500-1000 pips in a short period.
- Correlation can be used as a hedging tool to cut risk.
The Correlation Code course demonstrates a totally new way to trade the forex market, creating a new methodology to generate more trades with greater profit potential.
