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How do you handle correlated positions? For example, taking multiple USD-related trades can sometimes increase your overall exposure without

How do you handle correlated positions? For example, taking multiple USD-related trades can sometimes increase your overall exposure without realizing it. Do you calculate your combined risk?

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  • Prageeth Dilshan

    I always calculate combined risk! If I have multiple trades involving USD, I treat them as one big USD position. I cap my total exposure so news events (like CPI or NFP) don't hit my entire account at once. Splitting the lot size across correlated pairs is a lifesaver.

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