you tell meQuote from SimpleTrades:
Oldtime, how does it work when you are trading a non USD based pair in a USD account? I've always avoided these pairs in a USD denominated account because isn't there a double exchange rate to consider?
For example:
short eur.aud -> short eur.usd X long aud.usd
Quote from oldtime:
you tell me
I'm just a beginner
I know no matter how Io it I have a hell of a lot of carry to overcome
I've traded this Cad in the past and when all said and done it was profitable
everynow and then Jack Larkin shows up and tries to straighten me out
difficult for me to talk to other traders because sometimes I am just talking about one pair, and other times I am talking about the whole portfolio
yes, I've talked about this many timesQuote from SimpleTrades:
You're a beginner. You had all of 2012 to play with this. I was trading XAUUSD last year. I've only been trading forex in 2013.
All of this gets rather complicated.
Example:
Short EUR.AUD
Short AUD.USD
But Short EUR.AUD => Short EUR.USD X Long AUD.USD. So if you're also shorting AUD.USD, you just cancelled out the Long AUD.USD.
Conclusion: I guess you should have just gone short EUR.USD
This spreading must leave you scratching your head at times wondering how much redundancy you have built into your trades.
Not a criticism; just an observation.
Quote from oldtime:
but what am I if I am long 2 aud.usd and short 1 eur.usd? Or 3 to one?
because I am worried about a move in usdQuote from SimpleTrades:
Yes, I know. This is where I start scratching my own head. Now, if you threw a long aud.eur, I would wonder what was going on inside of your head. This is why I am inclined to stick to pairs where the base is the same as the currency of my trading account.
it's kind of a bass akwards way of thinking about thingsQuote from oldtime:
because I am worried about a move in usd
in this case I am 25% exposed long usd.cad
in the other case, my base could be moving all over the place
I was betting on a stable usd
now I am betting on a stable cad
Quote from oldtime:
it's kind of a bass akwards way of thinking about things
theortically, before I was 50% long and 50% short usd
now (if I ever get filled) I will be 25% long usd
But right or wrong, I want to be exposed to something that is moving
where you been kid? all spread traders are directional, it's just we like trading the spread better than the outrightQuote from SimpleTrades:
Why is that? Could it because you want to profit from its direction? I can see the balancing act you're playing, but in the end you too are looking for that directional trade. If you get it right, you make money, otherwise you lose money.
So, I'm back to where I was. Investments traded in USD. Forex trading with one currency pair: EURUSD. So far, I'm in the red on my most recent trade. Lots of people do focus on a single item to trade and do very well.