what trading is this?

newspreadbetter

Member
71 0
Please bear with me, but what type of trading method is this (if any)

Watching 4 or 5 of the major indices (FTSE, DAX, DOW, S&P etc) and they often tend to move in similar directions. If 4 of them were down, say between -0.3% and -0.6% and the other was still up, theres a probability that will follow suit. Is there a name for this type of trading please?
 

bredin

Member
80 20
correlation trading.

Its quite common in currencies as well.

Just remember that the "other one" is sometimes the lead, and not the follower.

B.
 
 
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