Correlation measures how two currency pairs tend to move together. A positive correlation means they move in the same direction, a negative one means opposite. Understanding it stops you from unknowingly doubling the same risk by opening two highly correlated trades at once.
Forex Term
Correlation
How closely two pairs move in relation to each other.
Example
EUR/USD and GBP/USD are often positively correlated, so they frequently rise and fall together.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.