The degree to which two currency pairs move together. EUR/USD and GBP/USD are positively correlated (~0.85). EUR/USD and USD/CHF are negatively correlated (~-0.90). Trading correlated pairs simultaneo
The degree to which two currency pairs move together. EUR/USD and GBP/USD are positively correlated (~0.85). EUR/USD and USD/CHF are negatively correlated (~-0.90). Trading correlated pairs simultaneously effectively doubles your risk. Prop traders should treat correlated positions as one combined trade for risk management.