// TRADING TERMINOLOGY

What is Correlation Coefficient?

A statistical measure that calculates the strength of the relationship between the relative movements of two securities.

In-Depth Explanation

The values range between -1.0 and 1.0. A correlation of 1.0 means they move in perfect sync; -1.0 means they move in opposite directions.

"The correlation coefficient between Gold and the US Dollar is often strongly negative."

A statistical measure of how two securities move in relation to each other.

The practice of spreading investments across different assets to reduce overall risk.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.

Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.

Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.

Knowing the terms is just the start. Learning how to apply them is where the edge is found.