A basket forex trade is an order to buy or sell a group of currency pairs simultaneously with the intention of betting on the potential of one single currency. Basket trading is essential for institutional investors and investment funds who wish to hold a diversity of currencies without holding negative correlated positions in the market. By using a Basket Trading methodology you can focus your brains on predicting and assessing the technical and fundamental feasibility of a single currency while still hedging risk by diversifying with all major currency pairs.
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