Tracking Error Formula: A Guide To Forex Trading

4 min read

Tracking error formula is an important concept in Forex trading. It helps traders to measure the difference between the return on an index and the return of a portfolio. Tracking error measures the volatility of the portfolio compared to the index and can be used to assess the risk in an investor’s portfolio. It is a great tool for investors to identify the risks they face and to ensure the portfolio is closely matches the index. Tracking error formula is an essential tool for investors to measure their risk and to ensure their portfolio is performing as expected.