Correlation and Portfolio Risk in Multi-Asset Trading

A trader with five open positions is not necessarily running five independent risks. Depending on how those positions are constructed,…

Overnight Financing and Its Impact on Profitability

There is a cost in CFD trading that does not announce itself at the moment of entry. It does not…

Position Sizing and Long-Term Trading Outcomes

Two traders run the same strategy across the same instruments over the same twelve months. They use identical entry criteria.…

How Central Bank Decisions Affect Markets

A central bank rate decision is the most powerful scheduled event in the financial calendar. It moves currencies, reprices equity…