Curiosity has brought me to looking at currency etf spreads of spreads.
For example BZF/ICN - (FXC/FXA).
The result is to be long 2 currencies and short 2 currencies but trade/invest as a single position.
The chart of the spread1/spread2 ratio is like any other price chart and could be traded like
anything else.
The only value is see to this is to observe that a complex spread has ranged for years between
X and Y and is now reversing from X or Y. So, swing or longer term trades would seem more
suited to this.
The macro fundamentals behind complex spreads are beyond me. Much of the chart
levels may be random. Who knows.
By the way, cross products in ratios that reduce to single pairs are eliminated.
Double long/short one currency vs long/short two currencies is allowed.
You still end with a few hundred of these complex spreads using daily or weekly
Data for fxa,fxb,fxc,fxe,fxy,bzf,icn,uup.
I suppose one could put on a trade in spot forex, futures or etfs.
Probably many traders/investors are long one pair and short another at the same time.
Sort of like long aapl and short nflx simultaneously wanting both legs to work producing
trend in the pair when viewed as one position.
This is the same thing. Just a method of viewing it as a single position.
Anyone actually do this interested in this or have any thoughts on this ?
Key: Aus, GB, Canada, Euro, japan, brazil, india, us
For example BZF/ICN - (FXC/FXA).
The result is to be long 2 currencies and short 2 currencies but trade/invest as a single position.
The chart of the spread1/spread2 ratio is like any other price chart and could be traded like
anything else.
The only value is see to this is to observe that a complex spread has ranged for years between
X and Y and is now reversing from X or Y. So, swing or longer term trades would seem more
suited to this.
The macro fundamentals behind complex spreads are beyond me. Much of the chart
levels may be random. Who knows.
By the way, cross products in ratios that reduce to single pairs are eliminated.
Double long/short one currency vs long/short two currencies is allowed.
You still end with a few hundred of these complex spreads using daily or weekly
Data for fxa,fxb,fxc,fxe,fxy,bzf,icn,uup.
I suppose one could put on a trade in spot forex, futures or etfs.
Probably many traders/investors are long one pair and short another at the same time.
Sort of like long aapl and short nflx simultaneously wanting both legs to work producing
trend in the pair when viewed as one position.
This is the same thing. Just a method of viewing it as a single position.
Anyone actually do this interested in this or have any thoughts on this ?
Key: Aus, GB, Canada, Euro, japan, brazil, india, us
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