We investigate the enhancement of the diffraction efficiency of dynamic gratings recorded in a bismuth silicon oxide crystal at large modulation by the moving-grating technique. The optimum fringe velocity for maximum diffraction efficiency and the degree of enhancement of the diffraction efficiency at optimum fringe velocity are experimentally found to be dependent on the fringe modulation. We apply this technique to real-time incoherent correlation using bismuth silicon oxide. There are two main advantages in using moving gratings: First, the signal-to-noise ratio can be improved considerably because of the improved diffraction efficiency. Second, the resonant effect reduces the effect of environmental disturbances on the peak-correlation intensity, which is significant when the threshold detection level of the correlator is set.