Trading Multiple Currencies
Every single trade in spot FX is a pairs trade, where a trader is long one currency and short the other. One mistake that amateur traders commonly make is when opening trades along multiple currency pairs in their trading accounts.
When amateur traders open up several positions, they often don’t recognize that these multiple trades can either completely negate some gains/losses from a currency or potentially double/triple a position in another (leading to excessive risk).
We discuss this concept to make sure that our traders are always following proper risk management procedures.