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Options Assets Correlation

The easiest way to understand options assets correlation is by example. Let us take US dollar vs Gold. Historically these two are inversely correlated, and correlation in options means that when the dollar rises gold is falling down and vice versa. As the US dollar is a global reserve currency and it is vital for trade. And Gold is primary asset for safeguarding your investment, as it is though not to depreciate. To put it simply, if the global economy is proliferating, then the USD is on the rise. And if we face a worldwide economic meltdown, people turn to Gold to protect their cash. Did you know that Swiss Frank is backed up more than 25 %, and that is why it is considered a safe-heaven for investors and it trades in line with Gold.

Options Market

Such interaction is the foundation stone of options market trading. Living in volatile times, with eminent default of Greece and uncertain future for the Eurozone, as well as troubles in Russian Federation we are to put our strategies not so much in short term perspective, but more long term. And this is where global options assets correlation plays a pivotal role. Simply saying, price action of one asset influences another directly.

Many brokers also provide trades by comparing two stocks from a similar market niche. To elaborate, you are offered Apple and Google stock in correlation to each other and it is your choice to predict if the first one will outperform the latter or not. This way you are not restricted by market conditions and can simply make options assets correlation of two given assets against each other – a way to go I may say!

Finally, one of the best perks of trading in options market is that you can earn a living on making educated predictions and invest faster and more profitable compared to regular stock market. By finding data that strongly support one asset against the other one can bring immense profit. So do not wait and have a close look at what options does your broker provide and if you are well-acquainted with some of them you have a green light to make returns on short- and long-term trades like never before.

Please find out in the table below what Educational Tools each broker can offer you for Advanced Level