Correlation plays a crucial role in forex trading, providing valuable insights into the relationship between currency pairs. By understanding and analyzing correlations, traders can make more informed decisions and manage their risk effectively. This article explores the concept of correlation in forex trading, the correlation coefficient, popular correlation pairs, and examples of currency correlation strategies.

Choosing which assets to use in the forex market is not the easiest task, especially for beginners, because even the most popular currency pairs are not always amenable to analysis. Nevertheless, using the most liquid pairs as the base and quoted pairs is the most reasonable option for working on the exchange. Let us find out what aspects one should pay attention to while choosing the best assets to trade, as well as learn the most tradable currency pairs in forex trading.

The forex market may seem quite complicated to some newbies. Plenty of instruments, calculators, different programs, and strategies - all this can make an unprepared trader's head spin. But to establish successful trading it is not necessary to plunge at once so much new information. At first, it is enough to understand what currency pairs are, as they are the main instrument on the forex market.

Every trader who plans to trade shares on the stock market or forex instruments needs to understand what liquidity means. After all, a proper understanding of the concept of liquidity can help choose assets that are more promising from the perspective of potential gainfulness and, therefore, increase income. In this article, we will discuss why liquidity is so important and what factors influence it. We will also tell you which formulas can be used to calculate various liquidity ratios and how to apply them in practice.

Most traders and investors are often confronted with such a purely market concept as "volatility". This term is used to analyze price movements as well as to characterize the trading instruments themselves in any financial market. Below you will learn what is the volatility of currency pairs - the concept, definition, characteristics, and how to use it when making trading decisions. What is the volatility of currency pairs? Volatility is a statistical financial index that describes the amplitude of price movements of a single trading instrument.