Market conditions and costs
Correlated pairs
Two positions that move together are one bigger position.
Arithmetic
True by construction. No market data is needed to know it.
Follows from how correlation adds risk. The Exchange already checks stacked risk across related markets.
What it is
EURUSD and GBPUSD, or US30 and NAS100, often move the same way. Holding both long with full size at each is closer to doubling one trade than opening two.
What it suggests
The risk per trade rule only works if each trade is separate.
How to check it
Count correlated open trades together against the total risk limit.
Common mistakes
- Counting two same-direction trades in related pairs as diversified.
Related lessons
Written in our own words. Education only, not financial advice.