Categories: Ratio

Vertical and Horizontal Integration Strategy in Forex Trading

Vertical and horizontal integration strategies are two important concepts in the context of Forex trading. Vertical integration occurs when a trader both buys and sells elements of currency pairs within the same market. By doing this, traders can increase their profit potential by reducing their risk exposure and mitigating the effect of market volatility. Horizontal integration involves trading in different markets from the one in which one is currently trading. It is a way to diversify one’s exposure by trading across a range of different markets. This helps to even out and spread risk across multiple markets while potentially still finding the same level of profit. Both vertical and horizontal integration strategies are important for Forex traders looking to best manage their risk/reward balance.

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