"Trading multiple currency pairs can make forex trading a lot more exciting. Depending on the assets that you are trading, there is a good chance that the profits can be increased greatly. However, in doing so, traders do not realize whether they are taking on more risk. Of course, logic dictates that when you have an exposure in more than one currency pair, you are indeed taking on more risk. But besides this, there is another aspect that many traders do not know. This is to do with the concept of currency correlations. Currency correlations basically dictates, based on mathematical formula on how two currency pairs will behave. The behavior can be either positive, meaning that the two currency pairs move in the same direction, or negative, meaning that the two currency pairs move in opposite directions. Without knowing this relationship, if you take on multiple positions, there is a good chance that you are doubling your risk rather than…