Hi Community Members,
In the “Settings” area in Marketmilk, you can “normalize” the base currency. What does that mean in this context? Why would I want to do that? How does that help me to interpret the info presented in the accompanying diagram? Thanks for your help.
The “Normalize” settings ensure that all currency pairs within the watchlist have the same base currency.
A simple example is to look at the “GBP Pairs” watchlist.
You’ll notice that all currency pairs have “GBP” as the base currency, except for EUR/GBP.
If you were to look att he 12-month performance for all the GBP currency pairs, you’d see that they’re all positive or “green”…except for one…EUR/GBP.
That’s because “EUR” is the base currency, so even though GBP appreciated against EUR, the graph shows negative or “red”.
By “normalizing”, all currency pairs within a watchlist can be evaluated the same way.
Thanks Pippo. That was very helpful.
When you have the same base currency it is referred to as normalizing.
Learn something new every day in this game!