what is currency correlation?

INTRODUCTION :
Aslam u Alaikum! Dear members i hope ap sab kehriyat sy hon gay, or market main achi earning kar rhy hon gy. Dear agr ap market main kamyabi Hasil karna chahty hain to aapko Hamesha experience k satg kam karna hota hai aur apni learning ko perfect banana hota hai. Tab hi ap kamyabi hasil kar sakte hain.Forex trading mein agar aap successful trading karna chahte hain. To ap ko different factor par study karty hain to ap ko bhot zyda advantages available hoty hain aj main ap ko Reversal And Retracement k related important information share karna chahti hun umeed hai ap es ko achi tara samjhy gay.

WHAT IS CORRELATIONS IN FOREX TRADING:

Dear, mairay knowledge k mutabik jab forex market k chart main 2 curriencies ka aik dusray k sath correlation hota hai, jab chart pay 2 pairs same directions main run kartay hain to usay ham positive correlation kehtay hain, aur jab wahi pairs aik dusray k opposit run kartay hain tab ham unko negative correlation kehtay hain.



HOW TO TRADE CURRENCY CORRELATION :

Dear, mairay knowledge k mutabik world ki curriencies ka correlation bilkul normal hai, for example ham candial doller (CAD) ki baat kartay hain jiska correlation oil prices say hai, Astralian doller (AUD) ka correlation Newzeland (NZD) say hai aur usk sath sath gold aur cruide bhi is say related hain. Ab yeh sab aik traders pay depend karta hai k us nay kasiay in correlations ko apnay mined main rkahtay hwauy market k chart main trading kartay hwuay losses say bachna hai aur kaisay profit ko hasil karna hai.


INTERPRETATION PROCESSES:

Dear, mairay knowledge k mutabik agar ham trading correlation ka acha knowledge hasil kartay hain to hamain market main kaam kartay hwauy double faida hasil ho skata hai qk jahan pay curriencies ka correlation hai wahi pay ham unko hedging kartay hwuay apnay orders ko long term k liye wait aur hold say acha faida hasil kar saktay hain, qk jab market main supply aur demand k time pay ham hedging k douraan cut kartay hain to next hamara order profit hasil karna start kar daiga jis say ham hedging positions say acha benefit hasil kar skatay hain.

Re: What is currency correlation?

Assalamu Alaikum Dosto!

Forex Currencies Correlation

Forex correlation ya currency correlation traders ke liye yeh shanakht karne ka aik tareeqa hai ke aaya aik currency jore/forex jore ka issi terhan dosray currency jore k muqabele main naqal-o-harkat kia hai. Aik misbet correlation ki numaindagi currency ke do jore aik hi waqt mein oopar ya neechay jatay hain. Taham, agar aik currency ka jora dosray ke mukhalif harkat karta hai yani aik oopar jata hai aur dosra neechay jata hai, to usay manfi correlation ke naam se jana jata hai. Currency correlation ko na-sirf price k analysis karte waqt balkah kisi doosri commodities, stock ya tools k analysis karte waqat bhi monitor karna aur samjhna zaroori hai.

Correlated Currency Pairs

Currency ke jore apas mein kafi had tak correlated hote hen, jab bhi woh aik dosray par munhasir hote hen. Yeh uss waqat ho sakta hai jab har jore mein currencies aik jaisi hon ya aik jaisi hososeyat rakhne wali hon. Misaal ke tor par, EUR/USD aur GBP/USD dono mein USD aik aam factor ke tor par hota hai. Is ke oopri hissay mein euro-zone aur Bartania aik dosray ke sath trade karne wali economies k darmiyan qareebi tor par correlated hen. In awamil ki bunyad par ye currency pairs apas main aik strong correlation rakhte hen.
Is ka matlab hai ke agar USD sharah mubadla k tor par istemal hota hai to aap ko ziyada tar USD currency ke jore aik hi simat mein jatay hue nazar ayen ga, yani AUD/USD aur NZD/USD bhi aik positive correlated forex jora hoga. Taham aap yeh dekhen ge ke kuch positive correlated forex joron ka talluq kamzor ya mazboot hoga. Iss ki wajah yeh hai ke yeh tamam currencies allag allag economies hen, yeh sab mukhtalif cheesen sell karte hen aur mukhtalif tareeqon se sharah mubadla ko mutasir karti hain.

Non- Correlated Currencies

Currency k jore jo aik dosray k muqabele main open movement nahi karte hen. Yeh aam tor par uss waqt hota hai, jab do allag allag joron mein currencies bilkul mukhtalif hon ya bel-tarteeb mukhtalif economies se hon.
Misaal ke tor par, EUR/USD aur GBP/NZD, yeh dono currency ke jore non-correlated hen, kyunkay inn mein koi mushtareqa currency shaamil nahi hai aur yeh 4 allag allag economies hen, ( euro-zone, American, UK aur New Zealand). Iss ka matlab yeh hai ke aik currency jore k value main agar izzafa hota hai, to dosray k increase hone ka iss se koi talluq nahi hai.

Trading

Forex traders ya to apni trading ko hadge karne, apne risk ko increases ya decrease k correlation k zariye value peda karne k liye currency k correlation ka istemal karte hen. Currency correlation ko trading karne ke mukhtalif tareeqay hain.
Trader mumkina tor par apne munafe ko increase karne ke liye currency correlation ka istemaal karte hen. Misaal ke tor par, chunkay GBPUSD aur EURUSD positive tor par aapas mein correlated hen, aik trader correlation ko istemaal karne ke liye dono par long trading kar sakta hai.
Dosri taraf, trader ziyada risk se bach satke hen aur risk ko kam karne ke liye currency correlation ko istemaal karne ka intikhab kar satke hen. Misaal ke tor par, EURUSD par ziyada se ziyada position size rakhnay ke bajaye trading EURUSD par position size ka 50% aur GBPUSD par 50% taqseem kar sakti hai.
Mutabadil tor par, aik trader currency ke jore ki value ka andaza laganay ke liye correlation ka istemal kar sakta hai. Misaal ke tor par CAD jore Crude oil (WTI) ki qeematon se bohat ziyada marboot hai. Trader analysis kar sakta hai ke agar WTI ki qeematein increase hoti hai, to is baat ki tawaqqa hai, k CAD ki qeematein bhi increase sakti hen. lehaza, barah-e-raast correlation ki trading nah karen balkay un ke analysis mein correlation ka istemal karen.

Forex mein currency taluqat ka mukhtasir tor par correlation is period ki nazron se hota hai, jab do ya ziyada currencies ek dusre ke sath kisi time mein badalte hain. Yeh taluqat ek dosre se mutassir ho sakte hain aur mukhtalif factors ki wajah se tabdeel ho sakte hain. Mudra taluqat ki samajh, forex traders ke liye behad ahem hai, kyunke yeh unhein samajhne aur samay par behatar faislon ko lenay mein madad deta hai. Forex market mein sabhi currencies ki apni makhsoosiyat hoti hain, jaise ki desh ki androni halat, siasat, tijarat, tarrar ki keemat, aur mukhtalif economy indicators. In sab factors ki wajah se har currency ki keemat tabdeel hoti rehti hai. Currency correlation ko samajhne ka matlab yeh hai ke kis tarah ek currency ki keemat dusri currency ki keemat se mutassir hoti hai. Currency correlation typically mein -1 se +1 tak ka range hota hai. Agar do currencies ki correlation +1 hai, toh woh positive correlation ki misal hai, jis ka matlab hai ke jab pehli currency badhti hai, toh dusri currency bhi badhti hai. Is tarah ke mudra taluqat mein dono currencies ek dusre ke sath sath badhte aur ghatte hain. Agar correlation -1 hai, toh yeh negative correlation ki misal hai, jahan pehli currency ki badhti hai, toh dusri currency ghat ti hai. Aise taluqat mein dono currencies ek dusre ke sath ulta harkat karti hain. Agar correlation 0 hai, toh yeh zero correlation ki misal hai, jahan dono currencies ka koi correlation nahin hota aur unki keemat aapas mein koi mutassir taluqat nahin rakhti. Currency correlation ko samajhne ke liye kuch mukhtalif types hoti hain: Positive Correlation Positive correlation mein 2 currencies ek dusre ke sath aapas mein mukhtalif times par badhte hain. Yeh taluqat am taur par un currencies ke darmiyan hoti hain jin ki economy halat ya economy policies mein samanta hoti hai. Misal ke taur par, agar Euro (EUR) aur British Pound (GBP) ki positive correlation hai, toh jab Euro ki keemat badhti hai, toh British Pound ki keemat bhi badhti hai. Aisa tab ho sakta hai kyunke dono currencies ka economy takh ek dusre se mutassir hota hai. Negative Correlation Negative correlation mein 2 currencies ulte harkat karte hain, yaani jab pehli currency badhti hai, toh dusri currency ghatti hai. Yeh taluqat am taur par un currencies ke darmiyan hoti hain jin ki economy policies ya tarrar ki keemat mein ulat pher hoti hai. Misal ke taur par, agar US Dollar (USD) aur Japanese Yen (JPY) ki negative correlation hai, toh jab USD ki keemat badhti hai, toh JPY ki keemat ghatti hai. Aisa tab ho sakta hai kyunke dono currencies ke beech safe-haven ki khasiyat hoti hai. Zero Correlation Zero correlation mein do currencies ka koi correlation nahin hota, jab ek currency badhti hai, toh dusri currency par koi asar nahin padta. Aisa tab ho sakta hai jab dono currencies ke darmiyan koi economy ya siasati taluq nahin hota hai. Misal ke taur par, agar Australian Dollar (AUD) aur Canadian Dollar (CAD) ki zero correlation hai, toh jab AUD ki keemat badhti hai, toh CAD ki keemat par koi asar nahin parta hai. Currency correlation ko samajhna aur istemal karna forex traders ke liye behad zaroori hai, kyunke yeh unhein market ke mazboot aur kamzor mudraon ke beech rishton ko samajhne mein madad deta hai. Agar ek trader do currencies ki correlation ko theek se samajhta hai, toh woh sahi samay par position le sakte hain aur risk ko kam kar sakte hain. Misal ke taur par, agar ek trader positive correlation ko samajhta hai aur usse pata hota hai ke Euro (EUR) aur Swiss Franc (CHF) ki positive correlation hai, toh jab Euro ki keemat badhegi, woh Swiss Franc mein bhi izafa ki ummeed rakhsakta hai. Is tarah se, woh dono currencies ke beech taluqat ka faida utha sakta hai.

Assalamualaikum! Umeed hai k ap sb khariyat sy hongy. R apky trading sessions achy jaa rhy hongy.Aj ka hmra or discussion topic "Currency Correlation". Dekhty hain k ye hmein Kya information deta hai r hmry ilam Mai Kesy ezafa krta hai. Introduction aik mo-asar tajir ban'nay ke liye, market ke utaar charhao ke liye –apne poooray port folyo ki hsasit ko samjhna sy zaroori hai. yeh khaas tor par is waqt hota hai jab forex ki tijarat hoti hai. chunkay krnsyon ki qeemat joron mein hoti hai, koi aik jora doosron se mukammal tor par azad tijarat nahi karta hai. aik baar jab aap un artbat se waaqif ho to jayen aur yeh kaisay bdalty hain, to aap inhen –apne sy majmoi port folyo ki numayesh ko control karne ke liye istemaal kar satke hain . Keysteps artbat aik shmaryati pemana hai ke kis terhan do ka aik dosray se talluq hai. artbat ka jitna ziyada hoga, woh itnay hi qareeb se munsalik hon ge. aik misbet artbat ka matlab hai ke do ki qadren aik hi simt mein harkat karti hain, or to manfi artbat ka matlab hai ke woh mukhalif simtao mein harkat karte hain. forex marketon mein, artbat ka istemaal is baat ki pishin goi karne ke liye kya jata hai ke kon se koi currency jore ki shrhin mil kar agay barh sakti hain. manfi tor par munsalik krnsyon ko bhi beijing ke maqasid ke liye istemaal kya ja sakta hai . Calculating correlations yourself aap ke artbat ke jore ki simt aur taaqat ko barqarar sy to rakhnay ka behtareen tareeqa yeh hai ke aap khud un ka hisaab lagayen. yeh mushkil lag sakta hai, lekin yeh to haqeeqat mein bohat aasaan hai. software barri tadaad mein un puts ke liye artbat ko taizi se ginnay mein madad karta hai. aik saada artbat ka hisaab laganay ke liye, sirf aik spread sheet programme istemaal karen, jaisay to es microsoft excel. bohat se charting packages ( yahan tak ke kuch muft bhi ) aap ko tareekhi yomiya currency ki koi qeematein down load karne ki ijazat dete hain, jisay aap phir excel mein muntaqil kar satke hain. excel mein, sirf artbat ka function istemaal karen, jo hai = correl ( had 1, had 2 ). aik saal, aur aik mah ki pichli ridngz waqt ke sath bahami talluq mein mamaslat aur farq ka sab se ziyada jame nazriya paish karti hain. taham, aap khud faisla kar satke hain ke aap un mein se kon si ya kitni ridngz ka koi tajzia karna chahtay hain. –apne do currency joron ke liye qeematon ka data haasil karen. bolein, gbp / usd aur usd / jpy. do infiradi column banayen, har aik ko un joron mein se aik ka label laga sun-hwa hai. phir kalmon ko pichli sy yomiya qeematon se pur karen jo har jore ke liye is waqt ki muddat ke douran jo aap tajzia kar rahay hain. kalmon sy mein se aik ke neechay, khaali slat mein, type karen = correl (. qeematon ke kalmon mein se aik mein tamam data ko numaya krain aap ko formula box mein sales ki aik range milni chahiye. naye sale ko zahir karne ke liye coma mein type karen. doosri currency ke liye iqdamaat 3-5 ko dohrayen. farmolh band karen taakay yeh = correl ( a1 : a50, b1 : b50 ) ki terhan nazar aaye. jo tadaad tayyar ki jati hai woh do currency ke joron ke darmiyan talluq ko zahir karti hai . Use Correlations to trade forex sab se pehlay, woh aap ko do pozishnon mein daakhil sy honay se bachney mein madad kar satke hain jo aik or to dosray ko mansookh kar dete hain, misaal ke tor par, yeh jaan kar ke eur / usd aur usd / chf taqreeban 100 % waqt mukhalif simtao mein jatay hain, aap dekhen ge ke taweel eur / ka port folyo hai. usd aur lamba usd / chf aik jaisa hai jis ki amli tor par koi position nahi hai —kunkey jaisa ke artbat zahir karta hai, jab eur / usd release hon ge, usd / chf farokht se guzray ga. doosri taraf, taweel eur / usd aur lamba aud / usd ya nzd / usd rakhna aik hi position par dugna honay ke mutradif hai kyunkay artbatat itnay sy to mazboot hain. tanawu par ghhor karne ka aik aur Ansar hai. chunkay eur / usd aur aud / usd ka bahami talluq sy riwayati tor par 100 % misbet nahi hai, is liye tajir un do to joron ko –apne khatray ko kuch had tak mtnoa bananay ke liye istemaal kar satke hain aur ab bhi aik bunyadi nuqta nazar ko barqarar rakhtay hain. misaal ke tor par, usd par mandi ka nuqta nazar zahir karne ke liye, tajir, eur / usd ke do laat kharidne ke bajaye, eur / usd ka aik laat aur aud / usd ka aik laat khareed sakta hai. do mukhtalif currency ke joron ke darmiyan namukammal artbat ziyada tanawu aur mamooli tor par kam khatray ki ijazat deta hai. Or to mazeed bar-aan, Australia aur Europe ke markazi bankon mein maliyati policy ke mukhtalif tasbat hain, is liye dollar mein izafay ki soorat mein, australvi dollar euro se kam mutasir ho sakta hai, ya is ke bar aks. aik tajir –apne sy faiday ke liye mukhtalif pipe ya point value bhi istemaal kar sakta hai. aayiyae aik baar phir eur / usd aur usd / chf par ghhor karen. un ka taqreeban kaamil manfi talluq hai, lekin eur / usd mein aik pip move ki qader 100, 000 units ke liye $ 10 hai jabkay usd / chf mein aik pip move ki koi qader itni hi units ke liye $ 9. 24 hai. is ka matlab yeh hai ke tajir eur / usd ki numayesh ko hadge karne ke liye usd / chf istemaal kar satke hain . The Bottom line aik muaser tajir ban'nay aur aap ki numayesh ko koi to samajhney ke liye, yeh samjhna zaroori hai ke mukhtalif currency ke jore aik dosray ke silsilay mein kis terhan sy harkat karte hain. currency ke kuch jore aik dosray ke sath mil kar chaltay hain, jabkay deegar qutbi mukhalif ho satke hain. currency ke artbat ke baray mein seekhnay se koi taajiron ko –apne port ko ziyada munasib tareeqay se munazzam karne mein madad millti hai. aap ki tijarti sy hikmat e amli se qata nazar aur chahay aap apni sy to pozishnon ko mtnoa banana chahtay hain ya –apne nuqta nazar se faida uthany ke liye mutabadil jore talaash kar rahay hain, mukhtalif currency joron aur un ke bdalty hue rujhanaat ke darmiyan talluq ko zehen mein rakhna bohat zaroori hai .